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9700.0
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2018-04-11 00:00:00 UTC
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Midday Update: Wall Street Regains Traction But Investors Still Wary of Heightened Geopolitical Risks
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AAOI
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https://www.nasdaq.com/articles/midday-update-wall-street-regains-traction-investors-still-wary-heightened-geopolitical
|
nan
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nan
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The major U.S. market averages were mixed at midday on Tuesday as Wall Street struggles to remain positive in the face of heighted geopolitical tensions between the U.S. and Russia. The Dow continues to trade underwater, while the S&P 500 and Nasdaq are clinging to fragile gains.
Investors flooded into safe-havens this morning after President Donald Trump issued a warning to Russia's threat to shoot down U.S. missiles in Syria with equal menace, wiping out all the good will established Tuesday from Chinese president Xi Jinping's conciliatory speech to open China's economy. Although U.S. stocks perked up after Trump softened his rhetoric to Russia, selling pressure resurfaced on reports Saudi Arabia intercepted Yemeni missiles, and threats from Israel to "wipe [Syrian president Bashar Assad] off the map" if Iran launches an attack from Syria.
Mideast turmoil overshadowed market friendly inflation data as the March consumer price index recorded its first decline in 10 months on lower gas prices. Excluding prices for food and fuel, the CPI was up an as-expected 0.2% last month.
The crisis in the oil-rich region also sent crude oil prices to a four-year high, driving up shares in the energy complex, one of only three sectors of the S&P 500 trading in the green.
The flight-to-safety drove gold to its highest level since August 2016, while the yield on the 10-year Treasury note dropped close to 3 basis points.
European markets capitulated to geopolitical tensions by losing ground in sympathy with Wall Street, led by Germany's DAX.
Crude oil was up $1.58 to $67.09 per barrel. Natural gas was up $0.02 to $2.68 per 1 million BTU. Gold was up $15.80 to $1,361.30 an ounce, while silver was up $0.18 to $16.77 an ounce. Copper was down $0.01 to $3.12 per pound.
Among energy ETFs, the United States Oil Fund was up 1.89% to $13.50 with the United States Natural Gas Fund was up 0.69% to $22.09. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 3.00% to 22.92 while SPDR Gold Shares were up 1.16% to $128.60. The iShares Silver Trust was up 1.05% to $15.78.
Here's where the markets stand at mid-day:
U.S. MARKETS
NYSE Composite Index was up 6.90 points (+0.05%) to 12,572.87
Dow Jones Industrial Index was down 81.04 points (-0.33%) to 24,326.96
S&P 500 was up 2.01 points (+0.07%) 2,659.55
Nasdaq Composite Index was up 23.06 points (+0.33%) to 7,117.43
GLOBAL SENTIMENT
FTSE 100 was down 9.51 points (-0.13%) to 7,257.14
DAX was down 103.35 points (-0.83%) to 12,293.97
CAC 40 was down 29.62 points (-0.56%) to 5,277.94
Nikkei 225 was down 107.22 points (-0.49%) to 21,687.10
Hang Seng Index was up 168.97 points (+0.55%) to 30,897.71
Shanghai China Composite Index was up 17.99 points (+0.56%) to 3,208.31
NYSE SECTOR INDICES
NYSE Energy Sector Index was 136.58 points (+1.21%) to 11,469.26
NYSE Financial Sector Index was down 10.51 points (-0.13%) to 8,032.06
NYSE Healthcare Sector Index was down 59.22 points (-0.43%) to 14,205.75
UPSIDE MOVERS
(+) EYEG (+22.38%) Granted patent for iontophoretic contact lens
(+) AAOI (+14.71%) Rosenblatt Securities issues positive report
(+) ACAD (+9.20%) FDA approves risk disclosure for Nuplazid
DOWNSIDE MOVERS
(-) LBCC (-28.00%) Will be delisted on Nasdaq for failing to maintain market cap above $35 mln
(-) QNST (-19.40%) Short seller Kerrisdale calls company an "outdated online marketer...with bad business model"
(-) NTEC (-18.75%) Plans stock offering
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(+) EYEG (+22.38%) Granted patent for iontophoretic contact lens (+) AAOI (+14.71%) Rosenblatt Securities issues positive report (+) ACAD (+9.20%) FDA approves risk disclosure for Nuplazid The major U.S. market averages were mixed at midday on Tuesday as Wall Street struggles to remain positive in the face of heighted geopolitical tensions between the U.S. and Russia. Although U.S. stocks perked up after Trump softened his rhetoric to Russia, selling pressure resurfaced on reports Saudi Arabia intercepted Yemeni missiles, and threats from Israel to "wipe [Syrian president Bashar Assad] off the map" if Iran launches an attack from Syria.
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(+) EYEG (+22.38%) Granted patent for iontophoretic contact lens (+) AAOI (+14.71%) Rosenblatt Securities issues positive report (+) ACAD (+9.20%) FDA approves risk disclosure for Nuplazid Among energy ETFs, the United States Oil Fund was up 1.89% to $13.50 with the United States Natural Gas Fund was up 0.69% to $22.09. NYSE Energy Sector Index was 136.58 points (+1.21%) to 11,469.26 NYSE Financial Sector Index was down 10.51 points (-0.13%) to 8,032.06 NYSE Healthcare Sector Index was down 59.22 points (-0.43%) to 14,205.75
|
(+) EYEG (+22.38%) Granted patent for iontophoretic contact lens (+) AAOI (+14.71%) Rosenblatt Securities issues positive report (+) ACAD (+9.20%) FDA approves risk disclosure for Nuplazid NYSE Composite Index was up 6.90 points (+0.05%) to 12,572.87 Dow Jones Industrial Index was down 81.04 points (-0.33%) to 24,326.96 S&P 500 was up 2.01 points (+0.07%) 2,659.55 Nasdaq Composite Index was up 23.06 points (+0.33%) to 7,117.43 FTSE 100 was down 9.51 points (-0.13%) to 7,257.14 DAX was down 103.35 points (-0.83%) to 12,293.97 CAC 40 was down 29.62 points (-0.56%) to 5,277.94 Nikkei 225 was down 107.22 points (-0.49%) to 21,687.10 Hang Seng Index was up 168.97 points (+0.55%) to 30,897.71 Shanghai China Composite Index was up 17.99 points (+0.56%) to 3,208.31
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(+) EYEG (+22.38%) Granted patent for iontophoretic contact lens (+) AAOI (+14.71%) Rosenblatt Securities issues positive report (+) ACAD (+9.20%) FDA approves risk disclosure for Nuplazid Gold was up $15.80 to $1,361.30 an ounce, while silver was up $0.18 to $16.77 an ounce. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 3.00% to 22.92 while SPDR Gold Shares were up 1.16% to $128.60.
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57786616-d642-47f4-98a5-484856def4d3
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9701.0
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2018-04-10 00:00:00 UTC
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What's Holding Finisar Corporation Back?
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AAOI
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https://www.nasdaq.com/articles/whats-holding-finisar-corporation-back-2018-04-10
|
nan
|
nan
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Since undergoing a merger with Optium Corporation back in 2008, shares of optic communications company Finisar Corporation (NASDAQ: FNSR) have floundered. An impressive rally mounted beginning in 2016 as the company's products were in high demand, but that momentum fizzled out last year. Finisar may have some promising things in the works, but a few areas of concern are holding this one back from greatness.
What does Finisar do?
Finisar is a manufacturer of fiber-optic system components and other related devices that enable video and data communications, networking, storage, and wireless technologies. The company breaks its revenue into two segments: telecom and datacom products.
There has been optimism surrounding the latter segment as it contains Finisar's VCSEL technology, a laser emitting chip crucial to 3-D sensing technology, powering features like facial recognition on Apple 's (NASDAQ: AAPL) iPhone X and other high-end smartphones. The prospect of becoming a supplier to the lucrative smartphone market is enough to grab some attention.
In anticipation of demand, the company has been building new facilities for the production of its VCSEL chips. However, recent trends make those moves look less lucrative than some may have hoped at first.
Finisar giveth and taketh away
Finisar's line of work is highly cyclical, with demand for components fluctuating depending on factors like seasonality and investment in new infrastructure from bigger companies that Finisar supplies. Added to that problem is the fact that just 10 customers made up 63% of Finisar's revenue in its last reported quarter. If only one of those customers -- Apple, for example -- reduces the size of its orders, it can have an adverse effect on Finisar.
These problems became apparent as of late when demand started to ebb, especially in the telecom segment. Even the VCSEL business slowed down, and Finisar management recently said it is selling nowhere near the number of VCSEL devices it thought it would. It all added up to a rough stretch for the stock over the last year.
Chart by author. Data source: Finisar quarterly earnings. YOY = year over year.
The good news is that the sliding telecom business is the smaller of the two; datacom made up 77% of revenue at last report. However, there's lots of competition out there, even for the up-and-coming VCSEL technology. Lumentum has also succeeded in getting some of its VCSEL chips into smartphones.
Finisar isn't alone with these issues. The whole optics industry has had a bad 2017, including former darling Applied Optoelectronics . The problem is that many of these optics manufacturers are not maximizing their production capacity, so when demand suddenly declines, revenue and profits tank.
What that means for investors is that it's hard to get too excited about Finisar stock. Perhaps its fortunes will turn in the near future, but the chances this one will make big money for investors look slim at this point.
10 stocks we like better than Finisar
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Finisar wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of April 2, 2018
Nicholas Rossolillo and his clients own shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
An impressive rally mounted beginning in 2016 as the company's products were in high demand, but that momentum fizzled out last year. Finisar is a manufacturer of fiber-optic system components and other related devices that enable video and data communications, networking, storage, and wireless technologies. The problem is that many of these optics manufacturers are not maximizing their production capacity, so when demand suddenly declines, revenue and profits tank.
|
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Since undergoing a merger with Optium Corporation back in 2008, shares of optic communications company Finisar Corporation (NASDAQ: FNSR) have floundered.
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There has been optimism surrounding the latter segment as it contains Finisar's VCSEL technology, a laser emitting chip crucial to 3-D sensing technology, powering features like facial recognition on Apple 's (NASDAQ: AAPL) iPhone X and other high-end smartphones. Finisar giveth and taketh away Finisar's line of work is highly cyclical, with demand for components fluctuating depending on factors like seasonality and investment in new infrastructure from bigger companies that Finisar supplies. 10 stocks we like better than Finisar When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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What does Finisar do? The company breaks its revenue into two segments: telecom and datacom products. Added to that problem is the fact that just 10 customers made up 63% of Finisar's revenue in its last reported quarter.
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e4745bf0-7151-490f-882f-d277e68be571
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9702.0
|
2018-03-27 00:00:00 UTC
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Wall Street Has Given Up on These 3 Stocks, and That's a Huge Mistake
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AAOI
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https://www.nasdaq.com/articles/wall-street-has-given-these-3-stocks-and-thats-huge-mistake-2018-03-27
|
nan
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nan
|
When many people search for stocks to buy, they often lean heavily on the recommendations provided by analysts on Wall Street. But astute investors know the biggest gains are reserved for those who are able to identify -- and take advantage of -- the calls it's gotten wrong.
To that end, we asked three Motley Fool investors to each find a stock that they believe Wall Street has mistakenly given up on. Here's why they like Chipotle Mexican Grill (NYSE: CMG) , Applied Optoelectronics (NASDAQ: AAOI) , and Regeneron Pharmaceuticals (NASDAQ: REGN) .
Give this burrito maker another bite
Steve Symington (Chipotle Mexican Grill): When Chipotle investors got their first sniff of food safety issues in late 2015, many analyst couldn't sprint for the exits fast enough. Today, Chipotle shares trade nearly 60% below their all-time highs.
But with the help of new CEO Brian Niccol -- who most recently served as the former head of Yum! Brands ' Taco Bell, a chain that knows a thing or two about overcoming major food scandals -- Chipotle is poised to deliver a meaningful turnaround that could mean enormous gains for patient investors.
That's not to say everyone on Wall Street has given up on the fast-casual burrito maker. Chipotle popped last month after two analysts upgraded the stock following its exciting hire. But even then, those upgrades offered tempered enthusiasm at best; Stifel increased its rating on Chipotle from sell to hold, increasing its per-share price target to $275 and saying they would prefer to remain on the sidelines as Chipotle implements traffic- and margin-driving initiatives. Credit Suisse also maintained its neutral rating, raising its own target to $290 and largely echoing Stifel's sentiment. Chipotle stock trades above both of those estimates at roughly $328 per share as of this writing.
Of course, I don't expect Chipotle to revisit is pre-scandal highs (at around $750 per share) anytime soon. Last quarter, its net income of $1.34 per share (adjusting for a one-time tax benefit) stood at only a third of what it earned in the same period three years ago. But it's already seeing the early benefits of its new queso and well-received menu price increases. Comps climbed a modest 0.9% year over year last quarter, and Chipotle believes the metric should increase in the low-single digit range for all of this year. Combined with the steady growth of its restaurant base (with between 130 and 150 new locations expected this year) and the potential for Niccol's influence to offer incremental margin and sales upside, I think Wall Street will regret remaining on the sidelines when Chipotle's accelerated progress becomes more evident in the coming quarters.
Don't call it a comeback
Anders Bylund (Applied Optoelectronics): The entire fiber-optic networking sector had a tough year in 2017 , and only a handful of these suffering stocks have made much of a rebound this year. One of the lingering stragglers is optical networking component maker Applied Optoelectronics, whose shares have fallen 33% lower in 2018 and 60% over the last six months.
AOI's top-line growth started off fantastically strong in early 2017, driven by massive orders from the company's largest customer -- a little e-commerce outfit you may know as Amazon.com . But then Amazon tapped the brakes on its investments in data center infrastructure, waiting for a new generation of higher-speed hardware to enable more efficient optical equipment upgrades in the near future.
Amazon's order slowdown was the harbinger of similar lag from other customers, and the Chinese telecom market added some uncertainty due to regulatory headwinds in the Middle Kingdom. So that's where AOI's sales growth stalled, followed by lower profits of every kind and the tumbling share prices we explored 10 seconds ago.
But that brutal market reaction was a massive mistake.
These issues should be short-lived, more of a temporary rest than a long-term disaster. Amazon and others are coming back to the order window once they have figured out exactly how to design their next-level networks. The Chinese crackdown on internet businesses won't last forever, and things should return to normal in that market eventually. Based on management comments from AOI and other players in this sector, the second half of 2018 looks a lot like a return to the booming demand for high-speed networks that we saw in early 2017.
Meanwhile, Applied Optoelectronics shares are trading at the bargain-basement level of 6.7 times trailing earnings and 1.4 times book value. The company is still profitable and very much in the game when those next-generation component orders start pouring in. That's a solid buy-in opportunity in my book.
This biotech's getting back on track
Todd Campbell (Regeneron Pharmaceuticals): "Given up" might be a bit much, but in an era when hold ratings are akin to sell ratings, not many Wall Street analysts appear to be cheering on Regeneron Pharmaceuticals. About half of analysts who cover it rate it as a hold but, frankly, I think they ought to be more optimistic.
Regeneron's shares are in the doldrums because it's been slow going for Praluent, a highly anticipated cholesterol drug that launched to fanfare in 2015. Praluent, which is co-marketed by Sanofi , hasn't delivered on billion-dollar blockbuster projections, but its sales are picking up and new drug launches could kick-start interest in the company again.
In Q4, 2017, Praluent's revenue increased 54% year over year to $63 million, bringing full-year 2017 sales to $195 million, up 68% year over year. Sales could accelerate this year following positive trial results last quarter from a long-term cardiovascular study that shows Praluent reduces cardiovascular events and death.
Regeneron's Dupixent, a treatment for eczema that Regeneron and Sanofi launched last year, is another reason for excitement. Unlike Praluent, Dupixent's gotten off to a quick start. Its sales were $139 million in Q4 2017, which gives it a $560 million annualized run rate. That's a pretty good pace after only two quarters on the market and sales could climb even higher if the Food and Drug Administration expands its use to include asthma patients later this year.
Due in part to the growth of Praluent and Dupixent, Regeneron's beaten analyst earnings estimates in each of the past three quarters, and as a result, they've increased their outlook for 2018 to $18.40 from $16.85 90 days ago. Given the earnings trend, it wouldn't surprise me if a lot of those hold ratings become buy ratings soon.
The bottom line
We can't guarantee that these three stocks will go on to achieve market-beating returns. After all, Chipotle Mexican Grill, Applied Optoelectronics, and Regeneron Pharmaceuticals all face their own unique challenges in winning back the hearts of investors. But between Chipotle's ongoing turnaround, AOI's long-term promise, and Regeneron's compelling new drug pipeline, we think chances are high that they'll do exactly that. Patient shareholders willing to buy now stand to be handsomely rewarded when Wall Street realizes its pessimism was misplaced.
10 stocks we like better than Chipotle Mexican Grill
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Chipotle Mexican Grill wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of March 5, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. Steve Symington has no position in any of the stocks mentioned. Todd Campbell owns shares of Amazon and Applied Optoelectronics. The Motley Fool owns shares of and recommends Amazon and Chipotle Mexican Grill. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Here's why they like Chipotle Mexican Grill (NYSE: CMG) , Applied Optoelectronics (NASDAQ: AAOI) , and Regeneron Pharmaceuticals (NASDAQ: REGN) . Brands ' Taco Bell, a chain that knows a thing or two about overcoming major food scandals -- Chipotle is poised to deliver a meaningful turnaround that could mean enormous gains for patient investors. Combined with the steady growth of its restaurant base (with between 130 and 150 new locations expected this year) and the potential for Niccol's influence to offer incremental margin and sales upside, I think Wall Street will regret remaining on the sidelines when Chipotle's accelerated progress becomes more evident in the coming quarters.
|
Here's why they like Chipotle Mexican Grill (NYSE: CMG) , Applied Optoelectronics (NASDAQ: AAOI) , and Regeneron Pharmaceuticals (NASDAQ: REGN) . Give this burrito maker another bite Steve Symington (Chipotle Mexican Grill): When Chipotle investors got their first sniff of food safety issues in late 2015, many analyst couldn't sprint for the exits fast enough. The Motley Fool owns shares of and recommends Amazon and Chipotle Mexican Grill.
|
Here's why they like Chipotle Mexican Grill (NYSE: CMG) , Applied Optoelectronics (NASDAQ: AAOI) , and Regeneron Pharmaceuticals (NASDAQ: REGN) . Give this burrito maker another bite Steve Symington (Chipotle Mexican Grill): When Chipotle investors got their first sniff of food safety issues in late 2015, many analyst couldn't sprint for the exits fast enough. Don't call it a comeback Anders Bylund (Applied Optoelectronics): The entire fiber-optic networking sector had a tough year in 2017 , and only a handful of these suffering stocks have made much of a rebound this year.
|
Here's why they like Chipotle Mexican Grill (NYSE: CMG) , Applied Optoelectronics (NASDAQ: AAOI) , and Regeneron Pharmaceuticals (NASDAQ: REGN) . In Q4, 2017, Praluent's revenue increased 54% year over year to $63 million, bringing full-year 2017 sales to $195 million, up 68% year over year. That's right -- they think these 10 stocks are even better buys.
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5dbf644f-5782-452f-8f5c-0e3aafa24770
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9703.0
|
2018-03-20 00:00:00 UTC
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Has Applied Optoelectronics (AAOI) Reached Value Stock Territory?
|
AAOI
|
https://www.nasdaq.com/articles/has-applied-optoelectronics-aaoi-reached-value-stock-territory-2018-03-20
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nan
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nan
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Shares of Applied Optoelectronics AAOI surged about 2.3% in late afternoon trading Tuesday-a rare sign of life for a stock that has been battered over the past several months. Even with today's gains, AAOI is down about 75% from its mid-summer highs, including a nearly 20% dip in the month since its latest earnings report.
Nevertheless, Applied Opto's slump have led some investors to consider buying the trendy stock on the dip. But has AAOI really entered value stock territory, or should investors continue to avoid this volatile pick? Let's take a closer look.
Latest Earnings
Applied Optoelectronics reported its latest quarterly financial results on Feb. 21. The company posted non-GAAP earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.82. That type of surprise typically pleases investors, but there were a number of negatives to focus on as well.
Notably, Applied Opto saw quarterly revenues of $79.9 million, which came in well below our consensus estimate of $86.2 million. Management also said that it expects 1Q18 revenues in the range of $67.0 million to $71.0 million and non-GAAP earnings in the range of $0.28 to $0.34 per share. Heading into the report, our consensus estimates were calling for Q1 revenues of $88.4 million and earnings of $0.74 per share.
That lackluster guidance was enough to send investors fleeing in the aftermath of the report, and AAOI has yet to recover from this post-earnings slump.
Current Valuation
Applied Opto's post-earnings slump has made its shares look awfully cheap compared to its industry peers:
AAOI's peer group is a Zacks-defined set of companies that includes similar tech suppliers like Ambarella AMBA , Lattice Semiconductor LSCC , Rambus RMBS , and Impinj PI . These companies are not directly comparable with Applied Opto, but they help show how investors are valuing these types of tech firms right now.
AAOI clearly has an attractive valuation compared to these other stocks. The company also has a "B" grade for Value in our Style Scores system, and on top of its attractive Forward P/E, the stock's P/S of 1.3 and PEG of 0.8 make it look undervalued at its current levels.
However, our Style Scores are best used in tandem with the Zacks Rank. In other words, the strongest value opportunities are those that present both a great Value grade and a strong Zacks Rank. AAOI is currently sporting a Zacks Rank #5 (Strong Sell), so we know that it is not one of these strong value stocks.
But why is Applied Opto sitting at such a low rank right now? Let's take a closer look at the company's latest earnings estimates to find out.
Estimate Revision Trends
The Zacks Rank focuses on an analyst estimates and estimate revisions to determine which stocks have an improving outlook and which stocks are trending in the wrong direction. Here's a look at the revision trend for AAOI:
While some might think the worst is over for AAOI, analyst estimates actually tend to come down gradually over time. That means that AAOI could continue to see more volatility as its outlook worsens. The stock might have interesting valuation metrics right now, but now all stocks that have been sold off deserve to be bought on the dip.
Want more market analysis from this author? Make sure to follow @ Ryan_McQueeneyon Twitter!
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Applied Optoelectronics AAOI surged about 2.3% in late afternoon trading Tuesday-a rare sign of life for a stock that has been battered over the past several months. Current Valuation Applied Opto's post-earnings slump has made its shares look awfully cheap compared to its industry peers: AAOI's peer group is a Zacks-defined set of companies that includes similar tech suppliers like Ambarella AMBA , Lattice Semiconductor LSCC , Rambus RMBS , and Impinj PI . Even with today's gains, AAOI is down about 75% from its mid-summer highs, including a nearly 20% dip in the month since its latest earnings report.
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Current Valuation Applied Opto's post-earnings slump has made its shares look awfully cheap compared to its industry peers: AAOI's peer group is a Zacks-defined set of companies that includes similar tech suppliers like Ambarella AMBA , Lattice Semiconductor LSCC , Rambus RMBS , and Impinj PI . Click to get this free report Rambus, Inc. (RMBS): Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Impinj, Inc. (PI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Applied Optoelectronics AAOI surged about 2.3% in late afternoon trading Tuesday-a rare sign of life for a stock that has been battered over the past several months.
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Current Valuation Applied Opto's post-earnings slump has made its shares look awfully cheap compared to its industry peers: AAOI's peer group is a Zacks-defined set of companies that includes similar tech suppliers like Ambarella AMBA , Lattice Semiconductor LSCC , Rambus RMBS , and Impinj PI . Click to get this free report Rambus, Inc. (RMBS): Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Impinj, Inc. (PI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Applied Optoelectronics AAOI surged about 2.3% in late afternoon trading Tuesday-a rare sign of life for a stock that has been battered over the past several months.
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Even with today's gains, AAOI is down about 75% from its mid-summer highs, including a nearly 20% dip in the month since its latest earnings report. Shares of Applied Optoelectronics AAOI surged about 2.3% in late afternoon trading Tuesday-a rare sign of life for a stock that has been battered over the past several months. But has AAOI really entered value stock territory, or should investors continue to avoid this volatile pick?
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79432510-3a39-4788-8df0-10d12b96f85d
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9704.0
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2018-03-16 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 3/16/2018
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AAOI
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-3162018-2018-03-16
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nan
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nan
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher . This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Kenneth Fisher changed from 60% to 90% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television ( CATV ), fiber-to-the-home (FTTH) and telecommunications (telecom). The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment. To Internet-based data center operators, it supplies optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. The Company supplies a range of products, including lasers, transmitters and transceivers, and turnkey equipment, to the CATV market. The Company designs, manufactures and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Kenneth Fisher has returned 387.25% vs. 174.62% for the S&P 500. For more details on this strategy, click here
About Kenneth Fisher : The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio ( PSR ) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment. The Company designs, manufactures and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process.
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APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins. Company Description: Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television ( CATV ), fiber-to-the-home (FTTH) and telecommunications (telecom).
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APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. The rating according to our strategy based on Kenneth Fisher changed from 60% to 90% based on the firm's underlying fundamentals and the stock's valuation. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here Since its inception, Validea's strategy based on Kenneth Fisher has returned 387.25% vs. 174.62% for the S&P 500.
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APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher . The Company supplies a range of products, including lasers, transmitters and transceivers, and turnkey equipment, to the CATV market.
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95dd0b28-ebe7-4ed1-ad95-a5f83a62445d
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9705.0
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2018-03-13 00:00:00 UTC
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Applied Optoelectronics (AAOI) in Focus: Stock Moves 7.8% Higher
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-in-focus%3A-stock-moves-7.8-higher-2018-03-13
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nan
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nan
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Applied Optoelectronics, Inc.AAOI was a big mover last session, as the company saw its shares rise nearly 8% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, which remained volatile and traded within the range of $26.78 -$34.55 in the past one-month time frame, witnessed a sharp increase yesterday.
The company has seen five negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.
Applied Optoelectronics currently has a Zacks Rank #5 (Strong Sell) while its Earnings ESP is 0.00%.
Applied Optoelectronics, Inc. Price
Applied Optoelectronics, Inc. Price | Applied Optoelectronics, Inc. Quote
A better-ranked stock in the Computer and Technology sector is Mellanox Technologies, Ltd. MLNX , which currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Is AAOI going up? Or down? Predict to see what others think: Up or Down
Zacks Top 10 Stocks for 2018
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Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, Inc.AAOI was a big mover last session, as the company saw its shares rise nearly 8% on the day. Is AAOI going up? Click to get this free report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc.AAOI was a big mover last session, as the company saw its shares rise nearly 8% on the day. Is AAOI going up?
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Click to get this free report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc.AAOI was a big mover last session, as the company saw its shares rise nearly 8% on the day. Is AAOI going up?
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Applied Optoelectronics, Inc.AAOI was a big mover last session, as the company saw its shares rise nearly 8% on the day. Is AAOI going up? Click to get this free report Mellanox Technologies, Ltd. (MLNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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3306775b-6526-422f-a481-45700976b889
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9706.0
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2018-03-09 00:00:00 UTC
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Here's Why Applied Optoelectronics, Inc. Shares Fell 14% Last Month
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AAOI
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https://www.nasdaq.com/articles/heres-why-applied-optoelectronics-inc-shares-fell-14-last-month-2018-03-09
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nan
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nan
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What happened
Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 13.8% in February of 2018, according to data from S&P Global Market Intelligence . The maker of fiber-optic components and modules for use in high-speed networking equipment was having a modestly positive month until a mixed fourth-quarter report made its appearance. Share prices plunged 23% lower the next day alone.
So what
Applied Optoelectronics' (AOI) fourth-quarter sales fell 6% year over year, to land at $79.9 million, short of Wall Street's $85.8 million consensus estimate. Adjusted earnings increased 6%, to $0.89 per diluted share, above the Street view of $0.83 per share. But that wasn't all -- AOI's revenue guidance for the first quarter stopped at roughly $69 million, far below analysts' $87 million projections at the time.
Now what
The company works in a highly cyclical industry, where order volumes ebb and flow as the need for high-speed components varies. Over the last year or so, demand has been low, as telecoms around the world have been drawing up their plans for 5G wireless network builds, starting in the back half of 2018 and continuing over the next several years. It's similar to the time when the approaching hurricane Irma sucked all the water out of Tampa Bay for a couple of hours, right before the cyclone arrived to give all the missing water back -- with interest.
This is AOI's reverse storm surge, led by unusually low order volumes from largest customer Amazon.com (NASDAQ: AMZN) . The e-commerce giant isn't planning any 5G wireless networks, but it's rebuilding its data center architecture around a new, faster generation of optical components. AOI is sure to benefit when Amazon steps back to the order window with a better idea of its long-term needs.
In the meantime, you can pick up Applied Optoelectronics shares at the low, low price of 7.8 times trailing earnings. That just might be too cheap to pass up , says fellow Fool Nicholas Rossolillo. He's not wrong.
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*Stock Advisor returns as of March 5, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 13.8% in February of 2018, according to data from S&P Global Market Intelligence . The maker of fiber-optic components and modules for use in high-speed networking equipment was having a modestly positive month until a mixed fourth-quarter report made its appearance. The e-commerce giant isn't planning any 5G wireless networks, but it's rebuilding its data center architecture around a new, faster generation of optical components.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 13.8% in February of 2018, according to data from S&P Global Market Intelligence . So what Applied Optoelectronics' (AOI) fourth-quarter sales fell 6% year over year, to land at $79.9 million, short of Wall Street's $85.8 million consensus estimate. In the meantime, you can pick up Applied Optoelectronics shares at the low, low price of 7.8 times trailing earnings.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 13.8% in February of 2018, according to data from S&P Global Market Intelligence . So what Applied Optoelectronics' (AOI) fourth-quarter sales fell 6% year over year, to land at $79.9 million, short of Wall Street's $85.8 million consensus estimate. *Stock Advisor returns as of March 5, 2018 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 13.8% in February of 2018, according to data from S&P Global Market Intelligence . Adjusted earnings increased 6%, to $0.89 per diluted share, above the Street view of $0.83 per share. In the meantime, you can pick up Applied Optoelectronics shares at the low, low price of 7.8 times trailing earnings.
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ca7aafc5-48a4-4f21-817b-44821cdbafac
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9707.0
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2018-03-08 00:00:00 UTC
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Notable Thursday Option Activity: FFIV, STZ, AAOI
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AAOI
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https://www.nasdaq.com/articles/notable-thursday-option-activity-ffiv-stz-aaoi-2018-03-08
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in F5 Networks, Inc. (Symbol: FFIV), where a total volume of 3,246 contracts has been traded thus far today, a contract volume which is representative of approximately 324,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.1% of FFIV's average daily trading volume over the past month, of 719,930 shares. Especially high volume was seen for the $150 strike call option expiring March 16, 2018 , with 286 contracts trading so far today, representing approximately 28,600 underlying shares of FFIV. Below is a chart showing FFIV's trailing twelve month trading history, with the $150 strike highlighted in orange:
Constellation Brands Inc (Symbol: STZ) saw options trading volume of 7,646 contracts, representing approximately 764,600 underlying shares or approximately 45% of STZ's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $235 strike call option expiring April 20, 2018 , with 2,073 contracts trading so far today, representing approximately 207,300 underlying shares of STZ. Below is a chart showing STZ's trailing twelve month trading history, with the $235 strike highlighted in orange:
And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 8,303 contracts, representing approximately 830,300 underlying shares or approximately 44.1% of AAOI's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $30 strike call option expiring April 20, 2018 , with 1,056 contracts trading so far today, representing approximately 105,600 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for FFIV options , STZ options , or AAOI options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $30 strike call option expiring April 20, 2018 , with 1,056 contracts trading so far today, representing approximately 105,600 underlying shares of AAOI. Below is a chart showing STZ's trailing twelve month trading history, with the $235 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 8,303 contracts, representing approximately 830,300 underlying shares or approximately 44.1% of AAOI's average daily trading volume over the past month, of 1.9 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for FFIV options , STZ options , or AAOI options , visit StockOptionsChannel.com.
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Below is a chart showing STZ's trailing twelve month trading history, with the $235 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 8,303 contracts, representing approximately 830,300 underlying shares or approximately 44.1% of AAOI's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $30 strike call option expiring April 20, 2018 , with 1,056 contracts trading so far today, representing approximately 105,600 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for FFIV options , STZ options , or AAOI options , visit StockOptionsChannel.com.
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Below is a chart showing STZ's trailing twelve month trading history, with the $235 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 8,303 contracts, representing approximately 830,300 underlying shares or approximately 44.1% of AAOI's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $30 strike call option expiring April 20, 2018 , with 1,056 contracts trading so far today, representing approximately 105,600 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for FFIV options , STZ options , or AAOI options , visit StockOptionsChannel.com.
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Below is a chart showing STZ's trailing twelve month trading history, with the $235 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 8,303 contracts, representing approximately 830,300 underlying shares or approximately 44.1% of AAOI's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $30 strike call option expiring April 20, 2018 , with 1,056 contracts trading so far today, representing approximately 105,600 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for FFIV options , STZ options , or AAOI options , visit StockOptionsChannel.com.
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d78bb06f-9949-407d-b008-48778f4878c0
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9708.0
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2018-03-08 00:00:00 UTC
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Is Applied Optoelectronics' Stock Too Cheap to Pass Up?
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-stock-too-cheap-pass-2018-03-08
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nan
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nan
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If there is one way to sum up the fortunes of Applied Optoelectronics (NASDAQ: AAOI) in the last year, it would be this: Amazon (NASDAQ: AMZN) giveth and Amazon taketh away. Shares of the fiber-optic supply manufacturer plunged after full-year 2017 results showed year-over-year contraction in sales, attributable primarily to lower demand from its largest customer, Amazon. That furthers a trend that started last summer when revenue began to slow down.
But with a P/E sitting at only 7.5 as of this writing, at some point Applied Optoelectronics (AOI) will be too cheap to ignore. Right?
Data by YCharts.
First, a recap
The big takeaway from the numbers is that 2017 was a landmark year for AOI. Fueled by strong sales, the company surged to a nearly $2 billion valuation in July. But the stock has sold off over 70% since then, as sales growth went from seemingly unstoppable to negative in the fourth quarter.
Chart by author. Data source: Applied Optoelectronics quarterly reports.
Let's not take too much away from the company, though. While sales slid in the last quarter of the year, revenue is still hovering near all-time highs. Plus, in spite of pricing pressure from competition, profitability is still strong. Management also announced its largest ever purchase commitment was signed. The customer is apparently Facebook (NASDAQ: FB) and is expected to begin contributing to revenue in the second half of the year.
Still, the drop in revenue and the accompanying steeper drop in profitability is concerning. It is proof that AOI hasn't reached efficient scale in its operations yet, and the outlook is that sales will remain soft for a while longer.
Did something go wrong?
No, nothing is wrong with AOI, it's simply that this type of business is highly cyclical . AOI is especially so, as large portions of its business rely on just a small handful of customers. The biggest, which AOI categorizes in its "data center" segment, is Amazon. Buildout of new data centers for cloud and e-commerce has slowed as of late, so without good diversification of sales, that trend is having a big negative impact on the company's results.
There are several more reasons for the sudden slowdown. Company management thinks the trend will continue in the current quarter because of regulatory headwinds in China surrounding internet censorship. That censorship has slowed down the develop of data centers crucial to things like video streaming and social networks. Chinese New Year, which landed on February 16 this year, also impacts production at AOI's factories in China and makes for a usually slow first quarter.
More broadly, the company is also facing the current migration from slower optical technology to newer, faster standards. It takes time for data center design teams to integrate new tech into plans, and it also takes time for a company like AOI to upgrade its operations to account for demand.
The point is, this cyclicity is normal and to be expected. Up until this last report, AOI owners had little information to work with regarding when the current down cycle would end. The good news is that management sees it ending by mid-2018. The bad news: That point is two quarterly reports away.
Considering the stock traded at 30 times trailing earnings in April of 2017, its P/E of just 7.5 makes the stock look pretty cheap. But I can speak from experience when saying that "value" stocks like AOI can, and often will, fall much further than investors expect. That's the nature of cyclical businesses, and it can be painful.
For those already in it for the long haul, now could be a decent opportunity to buy more. Don't be surprised if the pain isn't over yet, though.
10 stocks we like better than Applied Optoelectronics
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 5, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Nicholas Rossolillo has no position in any of the stocks mentioned. His clients may have positions in the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If there is one way to sum up the fortunes of Applied Optoelectronics (NASDAQ: AAOI) in the last year, it would be this: Amazon (NASDAQ: AMZN) giveth and Amazon taketh away. Shares of the fiber-optic supply manufacturer plunged after full-year 2017 results showed year-over-year contraction in sales, attributable primarily to lower demand from its largest customer, Amazon. Buildout of new data centers for cloud and e-commerce has slowed as of late, so without good diversification of sales, that trend is having a big negative impact on the company's results.
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If there is one way to sum up the fortunes of Applied Optoelectronics (NASDAQ: AAOI) in the last year, it would be this: Amazon (NASDAQ: AMZN) giveth and Amazon taketh away. Data source: Applied Optoelectronics quarterly reports. Buildout of new data centers for cloud and e-commerce has slowed as of late, so without good diversification of sales, that trend is having a big negative impact on the company's results.
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If there is one way to sum up the fortunes of Applied Optoelectronics (NASDAQ: AAOI) in the last year, it would be this: Amazon (NASDAQ: AMZN) giveth and Amazon taketh away. Buildout of new data centers for cloud and e-commerce has slowed as of late, so without good diversification of sales, that trend is having a big negative impact on the company's results. Chinese New Year, which landed on February 16 this year, also impacts production at AOI's factories in China and makes for a usually slow first quarter.
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If there is one way to sum up the fortunes of Applied Optoelectronics (NASDAQ: AAOI) in the last year, it would be this: Amazon (NASDAQ: AMZN) giveth and Amazon taketh away. Let's not take too much away from the company, though. Buildout of new data centers for cloud and e-commerce has slowed as of late, so without good diversification of sales, that trend is having a big negative impact on the company's results.
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a309ebe3-17e4-4847-8e2c-03a7118c569e
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9709.0
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2018-03-01 00:00:00 UTC
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Broadridge Financial Solutions, Applied Optoelectronics, Papa John's, Yum Brands and Domino's Pizza highlighted as Zacks Bull and Bear of the Day
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AAOI
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https://www.nasdaq.com/articles/broadridge-financial-solutions-applied-optoelectronics-papa-johns-yum-brands-and-dominos
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nan
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nan
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For Immediate Release
Chicago, IL - March 1, 2018 - Zacks Equity Research highlights Broadridge Financial Solutions BR as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Papa John's PZZA , Yum BrandsYUM and Domino's Pizza, Inc.DPZ .
Here is a synopsis of all five stocks:
Bull of the Day :
Broadridge Financial Solutions is a Zacks Rank #1 (Strong Buy) and has a Growth Style Score of "A" which get's this stock on my radar screen. Let's take a look at why this stock has the best Zacks Rank possible in this Bull of The Day article.
Description
Broadridge Financial Solutions provides investor communications and technology-driven solutions for the financial services industry worldwide. The company provides cloud-based marketing and customer communication tools, as well as customer and account data aggregation and reporting services. The company was founded in 1962 and is headquartered in Lake Success, New York.
Recent Earnings
On February 8, the company posted earnings of $0.79 per share and that was $0.24 better than the consensus estimate at the time. Revenues rose 13.4% year over year to $1.01 bln vs the $0.95 bln consensus.
BR raised guidance for FY18, seeing EPS of +27-31% from +15-19% to ~$3.97-4.10 vs. $3.82 Wall Street consensus estimate.
Estimates Moving Higher
Over the last 60 and 90 days, there have been 3 positive revisions to the current quarter, next quarter; this year and next year estimates. That is a lot of movement in the right direction!
The 2018 number has moved from $3.72 to $4.04 and the 2019 number moved from $4.04 to $4.41.
Those big moves are what really pushed the Zacks Rank to the highest level.
Bear of the Day :
Applied Optoelectronics was a market favorite in early 2017. The stock soared as buyers chased after each other to grab a piece of this ultra hot play. Times have changed and this stock is now a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
Description
Applied Optoelectronics makes fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. Applied Optoelectronics was founded in 1997 and is headquartered in Sugar Land, Texas.
Recent Earnings
The company reported earnings on Feb 21 after the close and topped the Wall Street consensus of $0.83 by $0.06. Normally, investors love to see something like that, but this beat came with some ugly guidance.
The company is expecting to earn $0.28 to $0.34 next quarter but at the time the Wall Street consensus was calling for $0.69.
Revenues are expected to be between $67M and $71M and that was also well below the $86M consensus estimate at the time.
Estimates Moving Lower
Following earnings and really the guidance, future earnings estimates moved lower and they did so in a big way. Investors that care about the fundamentals tend to shy away from stocks that post lower guidance and see lower earnings estimates.
Additional content:
Forget Papa John's and Pizza Hut, Buy Domino's
Shares of Papa John's surged on Wednesday following the company's announcement that it ended its partnership as the official pizza sponsor of the NFL. At the same time, the league's new pizza partner, Yum Brands' Pizza Hut, saw its stock price pop as well.
Papa John's also topped our revenue estimates after it reported $467.6 million in Q4 sales on Tuesday. Yet, the company fell short of fourth quarter earnings estimates and saw its North American comparable store sales dip by 3.9%-which is a trend the company expects to continue (also read: Papa John's Stock Dips As Q4 Domestic Sales Sink ).
Meanwhile, Pizza Hut has been a drag on Yum in recent years , with some suggesting that the company divest the pizza chain. Its new partnership , amid slumping NFL television ratings, might be Yum's final effort to boost sales.
Yet, with all of this talk about two pizza chains that are currently facing significant headwinds, investors might want to consider another pizza chain that is poised to expand both its top and bottom lines.
Domino's Pizza, Inc.
Domino's has become one of the world's largest fast-food chains, now boasting more than 14,800 stores in over 85 international markets. Last week, Domino's posted 4.2% domestic same-store sales growth, which led to 7.7% growth for the full year. The company, which opened 829 new locations outside of North America in 2017, saw its international comp-store sales climb by 3.4% for the year. This marked the 24th straight year of positive international same-store sales growth for Domino's.
The pizza chain has become an international powerhouse while also maintaining strong domestic sales. Domino's recently reaffirmed its three-to-five year outlook that calls for global retail sales growth of 8% to 12% and domestic and international same-store sales growth of 3% and 6%.
Domino's has also been on top of consumers trends. The company has built up its mobile and online ordering platforms to accommodate for customers that crave this ability. In order to expand its reach in other ways, Domino's also upped its in-store, carry-out deals and began to revamp restaurants.
The pizza chain also recently partnered with Ford to test new self-driving car technology, which could one day become a large part of Domino's business model (also read: Ford Teams With Domino's and Postmates on Self-Driving Car Project ).
Looking ahead to the first quarter of 2018, Domino's is projected to see its earnings soar by over 40% to hit $1.77 per share, based on our current Zacks Consensus Estimate. Domino's sales are projected to climb by 10% to hit $3.07 billion for the full year, while its earnings are expected to skyrocket 48.50%.
What's more, Domino's has met or topped earnings estimates in the trailing seven periods and is expected to see its earnings climb at an annualized rate of 15.17% over the next three to five years.
Investors should also be happy to note that Domino's is currently a Zacks Rank #2 (Buy) and rocks an "A" grade for Growth in our Style Scores system.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Yum! Brands, Inc. (YUM): Free Stock Analysis Report
Domino's Pizza Inc (DPZ): Free Stock Analysis Report
Papa John's International, Inc. (PZZA): Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - March 1, 2018 - Zacks Equity Research highlights Broadridge Financial Solutions BR as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Yum! Investors should also be happy to note that Domino's is currently a Zacks Rank #2 (Buy) and rocks an "A" grade for Growth in our Style Scores system.
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For Immediate Release Chicago, IL - March 1, 2018 - Zacks Equity Research highlights Broadridge Financial Solutions BR as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Yum! In addition, Zacks Equity Research provides analysis on Papa John's PZZA , Yum BrandsYUM and Domino's Pizza, Inc.DPZ .
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For Immediate Release Chicago, IL - March 1, 2018 - Zacks Equity Research highlights Broadridge Financial Solutions BR as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Yum! Yet, the company fell short of fourth quarter earnings estimates and saw its North American comparable store sales dip by 3.9%-which is a trend the company expects to continue (also read: Papa John's Stock Dips As Q4 Domestic Sales Sink ).
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For Immediate Release Chicago, IL - March 1, 2018 - Zacks Equity Research highlights Broadridge Financial Solutions BR as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Yum! Times have changed and this stock is now a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
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2d090595-92bc-473a-8df5-3e81652f73a0
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9710.0
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2018-03-01 00:00:00 UTC
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Bear Of The Day: Applied Optoelectronics (AAOI)
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AAOI
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https://www.nasdaq.com/articles/bear-day-applied-optoelectronics-aaoi-2018-03-01
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nan
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nan
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Applied Optoelectronics (AAOI) was a market favorite in early 2017. The stock soared as buyers chased after each other to grab a piece of this ultra hot play. Times have changed and this stock is now a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
Description
Applied Optoelectronics makes fiber-optic networking products primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-markets. Applied Optoelectronics was founded in 1997 and is headquartered in Sugar Land, Texas.
Recent Earnings
THe company reported earnings on Feb 21 after the close and topped the Wall Street consensus of $0.83 by $0.06. Normally, investors love to see something like that, but this beat came with some ugly guidance.
The company is expecting to earn $0.28 to $0.34 next quarter but at the time the Wall Street consensus was calling for $0.69.
Revenues are expected to be between $67M and $71M and that was also well below the $86M consensus estimate at the time.
Estimates Moving Lower
Following earnings and really the guidance, future earnings estimates moved lower and they did so in a big way. Investors that care about the fundamentals tend to shy away from stocks that post lower guidance and see lower earnings estimates.
Chart
Applied Optoelectronics, Inc. Price and Consensus
Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) was a market favorite in early 2017. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The stock soared as buyers chased after each other to grab a piece of this ultra hot play.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) was a market favorite in early 2017. Estimates Moving Lower Following earnings and really the guidance, future earnings estimates moved lower and they did so in a big way.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) was a market favorite in early 2017. Estimates Moving Lower Following earnings and really the guidance, future earnings estimates moved lower and they did so in a big way.
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Applied Optoelectronics (AAOI) was a market favorite in early 2017. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Recent Earnings THe company reported earnings on Feb 21 after the close and topped the Wall Street consensus of $0.83 by $0.06.
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cfade863-e2de-48d5-954f-e1d67757ccb6
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9711.0
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2018-02-28 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 2/28/2018
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AAOI
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-2282018-2018-02-28
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nan
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher . This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
FORWARD AIR CORPORATION ( FWRD ) is a small-cap growth stock in the Air Courier industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Forward Air Corporation is a freight and logistics company. The Company provides less-than-truckload ( LTL ), truckload, intermodal and pool distribution services across the United States and in Canada. The Company's segments include Expedited LTL, Truckload Premium Services (TLS), Intermodal and Pool Distribution. Expedited LTL segment provides expedited regional, inter-regional and national LTL services. TLS segment is a provider of transportation management services, including, but not limited to, expedited truckload brokerage, fleet services, as well as security and temperature-controlled logistics services in the United States and Canada. Intermodal offers first- and last-mile transportation of freight both to and from seaports and railheads through fleet and third party transportation providers. Pool distribution involves managing high-frequency handling and distribution of time-sensitive product to numerous destinations in specific geographic regions.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NUTRISYSTEM INC. ( NTRI ) is a small-cap growth stock in the Personal Services industry. The rating according to our strategy based on Kenneth Fisher changed from 68% to 90% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Nutrisystem, Inc. is a provider of weight management products and services, including nutritionally balanced weight loss programs, multi-day kits available at retail locations and digital tools to support weight loss. The Company's program customers purchase monthly food packages containing four-week meal plan consisting supply of breakfasts, lunches, dinners and snacks and flex meal plan recipes, which they supplement with fresh fruits, vegetables and dairy. Its customers order on an auto-delivery basis (Auto-Delivery), where means it sends a four-week meal plan on an ongoing basis until notified of a customer's cancellation. The Company offers its pre-selected favorites food pack or personalized plans, where customers can hand pick their entire menu or customize plans to their dietary preference. As of December 31, 2016, its meal plans featured over 150 menu options at different price points, including frozen and ready-to-go entrees, desserts, snacks and shakes.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FOOT LOCKER, INC. ( FL ) is a mid-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Kenneth Fisher changed from 90% to 100% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02. The Direct-to-Customers segment is multi-branded and sells directly to customers through Internet and mobile sites and catalogs. The Direct-to-Customers segment operates the Websites for eastbay.com, final-score.com, eastbayteamsales.com and sp24.com. Additionally, this segment includes the Websites, both desktop and mobile, aligned with the brand names of its store banners (footlocker.com, ladyfootlocker.com, six02.com kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, runnerspoint.com and sidestep-shoes.com).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television (CATV), fiber-to-the-home (FTTH) and telecommunications (telecom). The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment. To Internet-based data center operators, it supplies optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. The Company supplies a range of products, including lasers, transmitters and transceivers, and turnkey equipment, to the CATV market. The Company designs, manufactures and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SANDRIDGE ENERGY INC. (SD) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 70% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: SandRidge Energy, Inc. is an oil and natural gas company. The Company focuses on exploration and production activities in the Mid-Continent and Rockies regions of the United States. As of December 31, 2016, the Company had 3,122 gross producing wells and approximately 1,364,000 gross total acres under lease. The Company's primary areas of operation are the Mid-Continent area of Oklahoma and Kansas and the Niobrara Shale in the Colorado Rockies. As of December 31, 2016, the Company held interests in approximately 1,185,000 gross leasehold acres located primarily in Oklahoma and Kansas. As of December 31, 2016, the Company's interests in the Mid-Continent included 1,972 gross producing wells. As of December 31, 2016, the Company had approximately 1,087,000 gross acres under lease and 1,471 gross producing wells in the Mississippian formation. As of December 31, 2016, the Company's Rockies properties consisted of approximately 140,000 gross acres and 25 gross producing wells.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Kenneth Fisher has returned 401.02% vs. 174.31% for the S&P 500. For more details on this strategy, click here
About Kenneth Fisher : The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. As of December 31, 2016, its meal plans featured over 150 menu options at different price points, including frozen and ready-to-go entrees, desserts, snacks and shakes. The Company designs, manufactures and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here NUTRISYSTEM INC. ( NTRI ) is a small-cap growth stock in the Personal Services industry. Company Description: Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television (CATV), fiber-to-the-home (FTTH) and telecommunications (telecom).
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A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here APPLIED OPTOELECTRONICS INC ( AAOI ) is a small-cap value stock in the Electronic Instr. As of December 31, 2016, the Company held interests in approximately 1,185,000 gross leasehold acres located primarily in Oklahoma and Kansas. As of December 31, 2016, the Company's interests in the Mid-Continent included 1,972 gross producing wells.
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48f232e6-e674-43a2-bbb5-f86e0324b760
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9712.0
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2018-02-28 00:00:00 UTC
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New Strong Sell Stocks for February 28th
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AAOI
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-february-28th-2018-02-28
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
Applied Optoelectronics, Inc.AAOI is a designer and manufacturer of fiber-optic networking products. The Zacks Consensus Estimate for its current year earnings has been revised 3.9% downward over the last 30 days.
Endo International plcENDP is a manufacturer and seller of pharmaceutical products and devices. The Zacks Consensus Estimate for its current year earnings has been revised 0.3% downward over the last 30 days.
LaSalle Hotel PropertiesLHO is the owner and operator of a real estate investment trust. The Zacks Consensus Estimate for its current year earnings has been revised 9.4% downward over the last 30 days.
Sanderson Farms, Inc.SAFM is the processer and distributor of fresh, frozen, and prepared chicken products. The Zacks Consensus Estimate for its current year earnings has been revised 0.9% downward over the last 30 days.
Travelport Worldwide LimitedTVPT is a provider of payment and technology solutions for the travel and tourism industry. The Zacks Consensus Estimate for its current year earnings has been revised 0.7% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Travelport Worldwide Limited (TVPT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report
Endo International PLC (ENDP): Free Stock Analysis Report
LaSalle Hotel Properties (LHO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Applied Optoelectronics, Inc.AAOI is a designer and manufacturer of fiber-optic networking products. Click to get this free report Travelport Worldwide Limited (TVPT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report Endo International PLC (ENDP): Free Stock Analysis Report LaSalle Hotel Properties (LHO): Free Stock Analysis Report To read this article on Zacks.com click here. LaSalle Hotel PropertiesLHO is the owner and operator of a real estate investment trust.
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Click to get this free report Travelport Worldwide Limited (TVPT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report Endo International PLC (ENDP): Free Stock Analysis Report LaSalle Hotel Properties (LHO): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Applied Optoelectronics, Inc.AAOI is a designer and manufacturer of fiber-optic networking products. The Zacks Consensus Estimate for its current year earnings has been revised 3.9% downward over the last 30 days.
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Click to get this free report Travelport Worldwide Limited (TVPT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report Endo International PLC (ENDP): Free Stock Analysis Report LaSalle Hotel Properties (LHO): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Applied Optoelectronics, Inc.AAOI is a designer and manufacturer of fiber-optic networking products. The Zacks Consensus Estimate for its current year earnings has been revised 3.9% downward over the last 30 days.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Applied Optoelectronics, Inc.AAOI is a designer and manufacturer of fiber-optic networking products. Click to get this free report Travelport Worldwide Limited (TVPT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report Endo International PLC (ENDP): Free Stock Analysis Report LaSalle Hotel Properties (LHO): Free Stock Analysis Report To read this article on Zacks.com click here. View the entire Zacks Rank #5 List .
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6e0d1ae6-c040-4886-9ea4-e7bfff882055
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9713.0
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2018-02-23 00:00:00 UTC
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Tech Today: Buy Nvidia's Crypto, Two Hewletts Rising, Stop Shorting Applied Opto
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AAOI
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https://www.nasdaq.com/articles/tech-today-buy-nvidias-crypto-two-hewletts-rising-stop-shorting-applied-opto-2018-02-23
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nan
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nan
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Here are some things going on today in your world of techNvidia and AMD got crypto mo
Shares of Nvidia (NVDA) and Advanced Micro Devices (AMD) should both be bought on the prospect of their chips being used in crypto currency trading, writes Merrill Lynch's Vivek Arya, citing "accelerating trends," according to a summary of the report from TheFlyontheWall.
Nvidia stock is up $2.19, or 0.9%, at $244.34, while AMD is up 24 cents, or 2%, at $12.08.
Okta liked by Deutsche
Deutsche Bank's Gray Powell starts coverage of identity-management technology maker Okta (OKTA) with a Buy rating, and a $43 price target, citing the company's "disrupting" legacy companies in the market.
Okta stock is up 43 cents, or 1.2%, at $36.25.
Altaba is too cheap
Altaba (AABA), the stub company that spun out of the former Yahoo!, holding the remainder of its Asian investments, gets a price target increase from J.P. Morgan's Doug Anmuth, to $90 from $65, citing the deep discount of its NAV in advance of the company's financial update on February 27th. Anmuth maintains an Overweight rating.
Altaba stock is up $1.23, or 1.6%, at $76.75.
Fiber's rough times
One of the voices selling short Applied Optoelectronics (AAOI) last fall, Hamed Khorsand with the boutique BWS Financial today writes that he's dropping his coverage of the stock, following another disappointing earnings report on Wednesday afternoon, concluding the easy money has been made shorting the thing.
Khorsand thinks "there are several items from the fourth quarterearnings callto attract us in maintaining our short thesis" like the company still relying 40-gigabit transceiver revenue "to help gross margin stay above 40 percent," and a potential capital raise this year.
"Nevertheless, much of the'easy money' has been made." Applied shares, at a recent price of $26.98, are down 69% since Khorsand's July 20 warning, and down another 2% today.
Speaking of fiber optics, shares of Acacia Communications (ACIA) are down $7.64, or over 18%, at $34.20, after the company yesterday afternoon reported Q4 revenue of $86.6 million, missing the consumes for $88.4 million, and also missed by a wide margin with its forecast for revenue this quarter of $67 million to $74 million, versus $93 million.
The stock has gotten three downgrades from D.A. Davidson, Needham & Co., and MKM Partners.
Needham's Alex Henderson, cutting from Buy to Hold, concludes he should have "acted more aggressively on our concerns." He thinks the company's China market will recover, but that it still faces risk of business lost as customer ZTE losses market share to Huawei.
Western Dig has good trends
Stifel Nicolaus's Kevin Cassidy this morning resumes coverage of Western Digital (WDC) and Seagate Technology (STX), writing that both companies "continue to innovate" in the hard-disk drive market, and dismissing any worries about pricing decline in Western Digital's market for NAND.
He prefers Western's stock, assigning it a Buy rating and a $105 price target, while setting a Hold rating for Seagate and a $49 price target.
Western shares this morning are up $2.61, or 3%, at $88.14, while Seagate is up $1.40, or 2.8%, at $52.76.
Two HPs Shine
Shares of Hewlett Packard Enterprise (HPE) are up $1.61, or almost 10%, at $18.02, holding onto most of their gains from last night, after the company reportedfiscal Q1 results that handily topped analysts' expectations, beat with its outlook for profit this year, and announced a hike in its dividend of 50%.
There are no ratings changes this morning, but several price target changes. Simon Leopold of Raymond James, reiterating an Outperform rating, and raising his price target to $22 from $17, writes that "Although comparisons become tougher in 2HFY18, growth looks improved."
Hewlett's other half, personal computer giant HP Inc. (HPQ), is also on the march, after its own fiscal Q1 report that easily topped analysts' expectations and forecast of higher profit this quarter and for the year. The stock is up $1.34, or 6%, at $22.73.
Many are noting that the other shoe has to drop, as HP deferred announcing an increase to its capital returns following U.S. tax law changes.
But there's some good feeling from the bulls, with RBC Capital's Amit Daryanani, for example, reiterating an Outperform rating, writes that he expects "the strong performance to sustain, but expect growth to moderate given tougher compares and commodity headwinds."
"Net/Net," he concludes, "We think HPQ remains uniquely positioned to sustain upside through FY18 driven by end-demand, share gains and integration of Samsung assets."
Others have qualms about the business: Guggenheim's Robert Cihra reiterates a Neutral rating, writing that earnings are still tied to how much "leverage" the company gets from printing, something he doesn't like: "Outside recent memory-driven price hikes, we continue to see both PCs and Printing flat LT at best, so with HPQ's P/E having expanded 3 turns over the past year, we remain Neutral."
Trade Desk Soars
Shares of recently public programmatic ad buying tech firm The Trade Desk (TTD) are up $11.30, or almost 24%, at $59.70, building on last night's after-hours gains, after its report yesterday afternoon of Q4 revenue and profit that topped analysts' expectations, and beat with its quarterly and full-year forecasts.
Among the many bullish notes this morning with price target increases, SunTrust Robinson Humphrey's Youssef Squali reiterates a Buy rating, and raises his target to $64 from $60, writing the report "implies strong sustained momentum into Q1 and 2018," and that higher investments will pressure its profit margin, but are justified.
Appian's too pricey
Another recently public name, software tools maker Appian (APPN), are down $1.26, or 4%, at $29.37, despite its Q4 beat and higher outlook yesterday.
There's lots of applause today, but also lots of reluctance given a high valuation.
For example, Cowen & Co.'s Gregg Moskowitz reiterates a Market Perform rating, writing that "we remain constructive on APPN's low code opportunity" but "also believe this is being more than captured by APPN's current valuation at 9x 2018E EV/Sales."
Universal plunges
Shares of Universal Display (OLED), makers of organic light-emitting diode technology for displays, continue their decline after yesterday afternoon's report of Q4 results that topped analysts' expectations, but a year outlook that was below consensus. The stock is down $25.50, or almost 17%, at $129.35.
Hendi Susanto of Gabelli, who has a Hold rating, writes "We view management's expectations and guidance to be prudent and consistent with our belief that ramping up to a full production capacity at a high yield takes time and can be technically challenging, especially for new entrants.
Here comes AirPower?
The " AirPower," a wireless charging mat from Apple (AAPL) that is supposed to support charging of multiple devices simultaneously, which was unveiled in September, may go on sale next month, according to a speculative piece by Christian Zibreg of the iDownloadblog, citing a rumor at Japanese blog Mac Otakara.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fiber's rough times One of the voices selling short Applied Optoelectronics (AAOI) last fall, Hamed Khorsand with the boutique BWS Financial today writes that he's dropping his coverage of the stock, following another disappointing earnings report on Wednesday afternoon, concluding the easy money has been made shorting the thing. Khorsand thinks "there are several items from the fourth quarterearnings callto attract us in maintaining our short thesis" like the company still relying 40-gigabit transceiver revenue "to help gross margin stay above 40 percent," and a potential capital raise this year. Two HPs Shine Shares of Hewlett Packard Enterprise (HPE) are up $1.61, or almost 10%, at $18.02, holding onto most of their gains from last night, after the company reportedfiscal Q1 results that handily topped analysts' expectations, beat with its outlook for profit this year, and announced a hike in its dividend of 50%.
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Fiber's rough times One of the voices selling short Applied Optoelectronics (AAOI) last fall, Hamed Khorsand with the boutique BWS Financial today writes that he's dropping his coverage of the stock, following another disappointing earnings report on Wednesday afternoon, concluding the easy money has been made shorting the thing. Okta liked by Deutsche Deutsche Bank's Gray Powell starts coverage of identity-management technology maker Okta (OKTA) with a Buy rating, and a $43 price target, citing the company's "disrupting" legacy companies in the market. Speaking of fiber optics, shares of Acacia Communications (ACIA) are down $7.64, or over 18%, at $34.20, after the company yesterday afternoon reported Q4 revenue of $86.6 million, missing the consumes for $88.4 million, and also missed by a wide margin with its forecast for revenue this quarter of $67 million to $74 million, versus $93 million.
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Fiber's rough times One of the voices selling short Applied Optoelectronics (AAOI) last fall, Hamed Khorsand with the boutique BWS Financial today writes that he's dropping his coverage of the stock, following another disappointing earnings report on Wednesday afternoon, concluding the easy money has been made shorting the thing. Okta liked by Deutsche Deutsche Bank's Gray Powell starts coverage of identity-management technology maker Okta (OKTA) with a Buy rating, and a $43 price target, citing the company's "disrupting" legacy companies in the market. He prefers Western's stock, assigning it a Buy rating and a $105 price target, while setting a Hold rating for Seagate and a $49 price target.
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Fiber's rough times One of the voices selling short Applied Optoelectronics (AAOI) last fall, Hamed Khorsand with the boutique BWS Financial today writes that he's dropping his coverage of the stock, following another disappointing earnings report on Wednesday afternoon, concluding the easy money has been made shorting the thing. He prefers Western's stock, assigning it a Buy rating and a $105 price target, while setting a Hold rating for Seagate and a $49 price target. There are no ratings changes this morning, but several price target changes.
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7bcbdf65-3347-4f7a-97d0-2cdca531ada3
|
9714.0
|
2018-02-22 00:00:00 UTC
|
How Weak Guidance Crushed Roku and Applied Opto Shares
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AAOI
|
https://www.nasdaq.com/articles/how-weak-guidance-crushed-roku-and-applied-opto-shares-2018-02-22
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nan
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nan
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A quick glance at Thursday morning's biggest movers reveals that video-streaming hardware maker Roku ROKU and fiber-optic equipment supplier Applied Optoelectronics AAOI are among the day's worst losers in the wake of their respective earnings reports.
But a closer look at each of these reports, which were both released after the closing bell on Wednesday, does not necessarily paint a disastrous picture. Roku posted a surprise non-GAAP profit, surpassing our consensus estimate in just its second quarter as a publicly-traded company, while Applied Opto managed to beat bottom-line estimates despite slightly disappointing revenues.
Nevertheless, shares of both ROKU and AAOI opened more than 20% lower on Thursday morning, and while intraday trading has Roku trending higher and Applied Opto slipping further into the red, investors must feel disappointed by the reports.
So what caused these sell-offs? The answer lies beyond each companies latest results. The concern for Roku and Applied Opto appears to be centered on their respective outlooks for the upcoming fiscal periods.
Roku announced that it expects Q1 revenues in the range of $120 to $130 million. Heading into the report, our consensus estimate was calling for the company to witness Q1 revenues of $129.9 million, so we will likely see analysts move that prediction lower to better match Roku's own expectations (also read: Roku Crushes Earnings Estimates, Stock Tumbles on Soft Q1 Guidance ).
There also seems to be a concern that Roku could find itself in a pricing war soon. The streaming hardware firm reported lower revenues in its device business in the fourth quarter, and while that has not made an impact on overall results yet, the assumption is that it could drive Roku to lower prices to undercut competitors like Apple AAPL and Google GOOGL .
Meanwhile, Applied Opto's guidance was even bleaker. The fiber-optics giant expects Q1 revenues in the range of $67.0 million to $71.0 million and non-GAAP earnings in the range of $0.28 to $0.34. Before that announcement, our consensus estimates were calling for Q1 revenues of $88.4 million and earnings of $0.74 per share (also read: Applied Optoelectronics Tops Earnings Estimates, Stock Falls on Sluggish Guidance ).
AAOI was once a soaring stock thanks to the excitement around its communications equipment and the rise in demand from internet companies upgrading their cloud infrastructure. But competition has heated up and Applied Opto appears to be shedding key customers.
The moral of the story here is that investors in today's market are far more concerned about guidance than just about any other detail in a company's earnings report. Positive earnings surprises are great, but a "beat and raise" is the new standard.
Want more market analysis from this author? Make sure to follow @ Ryan_McQueeneyon Twitter!
More Stock News: This Is Bigger than the iPhone!
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Alphabet Inc. (GOOGL): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Roku, Inc. (ROKU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAOI was once a soaring stock thanks to the excitement around its communications equipment and the rise in demand from internet companies upgrading their cloud infrastructure. A quick glance at Thursday morning's biggest movers reveals that video-streaming hardware maker Roku ROKU and fiber-optic equipment supplier Applied Optoelectronics AAOI are among the day's worst losers in the wake of their respective earnings reports. Nevertheless, shares of both ROKU and AAOI opened more than 20% lower on Thursday morning, and while intraday trading has Roku trending higher and Applied Opto slipping further into the red, investors must feel disappointed by the reports.
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Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. A quick glance at Thursday morning's biggest movers reveals that video-streaming hardware maker Roku ROKU and fiber-optic equipment supplier Applied Optoelectronics AAOI are among the day's worst losers in the wake of their respective earnings reports. Nevertheless, shares of both ROKU and AAOI opened more than 20% lower on Thursday morning, and while intraday trading has Roku trending higher and Applied Opto slipping further into the red, investors must feel disappointed by the reports.
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A quick glance at Thursday morning's biggest movers reveals that video-streaming hardware maker Roku ROKU and fiber-optic equipment supplier Applied Optoelectronics AAOI are among the day's worst losers in the wake of their respective earnings reports. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, shares of both ROKU and AAOI opened more than 20% lower on Thursday morning, and while intraday trading has Roku trending higher and Applied Opto slipping further into the red, investors must feel disappointed by the reports.
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A quick glance at Thursday morning's biggest movers reveals that video-streaming hardware maker Roku ROKU and fiber-optic equipment supplier Applied Optoelectronics AAOI are among the day's worst losers in the wake of their respective earnings reports. Nevertheless, shares of both ROKU and AAOI opened more than 20% lower on Thursday morning, and while intraday trading has Roku trending higher and Applied Opto slipping further into the red, investors must feel disappointed by the reports. AAOI was once a soaring stock thanks to the excitement around its communications equipment and the rise in demand from internet companies upgrading their cloud infrastructure.
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951dc6b8-e3b3-4105-913a-710d303b1c5c
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9715.0
|
2018-02-22 00:00:00 UTC
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Notable Thursday Option Activity: JACK, AAOI, TSLA
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AAOI
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https://www.nasdaq.com/articles/notable-thursday-option-activity-jack-aaoi-tsla-2018-02-22
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Jack in the Box, Inc. (Symbol: JACK), where a total volume of 27,806 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 326.9% of JACK's average daily trading volume over the past month, of 850,535 shares. Especially high volume was seen for the $85 strike put option expiring April 20, 2018 , with 10,137 contracts trading so far today, representing approximately 1.0 million underlying shares of JACK. Below is a chart showing JACK's trailing twelve month trading history, with the $85 strike highlighted in orange:
Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 33,152 contracts, representing approximately 3.3 million underlying shares or approximately 262.3% of AAOI's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $35 strike put option expiring March 16, 2018 , with 5,305 contracts trading so far today, representing approximately 530,500 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Tesla Inc (Symbol: TSLA) saw options trading volume of 136,818 contracts, representing approximately 13.7 million underlying shares or approximately 241.3% of TSLA's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $350 strike call option expiring February 23, 2018 , with 6,416 contracts trading so far today, representing approximately 641,600 underlying shares of TSLA. Below is a chart showing TSLA's trailing twelve month trading history, with the $350 strike highlighted in orange:
For the various different available expirations for JACK options , AAOI options , or TSLA options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $35 strike put option expiring March 16, 2018 , with 5,305 contracts trading so far today, representing approximately 530,500 underlying shares of AAOI. Below is a chart showing JACK's trailing twelve month trading history, with the $85 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 33,152 contracts, representing approximately 3.3 million underlying shares or approximately 262.3% of AAOI's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $35 strike highlighted in orange: And Tesla Inc (Symbol: TSLA) saw options trading volume of 136,818 contracts, representing approximately 13.7 million underlying shares or approximately 241.3% of TSLA's average daily trading volume over the past month, of 5.7 million shares.
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Below is a chart showing JACK's trailing twelve month trading history, with the $85 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 33,152 contracts, representing approximately 3.3 million underlying shares or approximately 262.3% of AAOI's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $35 strike highlighted in orange: And Tesla Inc (Symbol: TSLA) saw options trading volume of 136,818 contracts, representing approximately 13.7 million underlying shares or approximately 241.3% of TSLA's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $35 strike put option expiring March 16, 2018 , with 5,305 contracts trading so far today, representing approximately 530,500 underlying shares of AAOI.
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Below is a chart showing JACK's trailing twelve month trading history, with the $85 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 33,152 contracts, representing approximately 3.3 million underlying shares or approximately 262.3% of AAOI's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $35 strike highlighted in orange: And Tesla Inc (Symbol: TSLA) saw options trading volume of 136,818 contracts, representing approximately 13.7 million underlying shares or approximately 241.3% of TSLA's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $35 strike put option expiring March 16, 2018 , with 5,305 contracts trading so far today, representing approximately 530,500 underlying shares of AAOI.
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Below is a chart showing JACK's trailing twelve month trading history, with the $85 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 33,152 contracts, representing approximately 3.3 million underlying shares or approximately 262.3% of AAOI's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $35 strike highlighted in orange: And Tesla Inc (Symbol: TSLA) saw options trading volume of 136,818 contracts, representing approximately 13.7 million underlying shares or approximately 241.3% of TSLA's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $35 strike put option expiring March 16, 2018 , with 5,305 contracts trading so far today, representing approximately 530,500 underlying shares of AAOI.
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64f74463-7477-4a1d-ad0c-1e80120b609e
|
9716.0
|
2018-02-21 00:00:00 UTC
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Earnings Reaction History: Applied Optoelectronics, Inc., 80.0% Follow-Through Indicator, 14.0% Sensitive
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AAOI
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https://www.nasdaq.com/articles/earnings-reaction-history-applied-optoelectronics-inc-800-follow-through-indicator-140
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nan
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nan
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Expected Earnings Release: 02/21/2018, After-hours
Avg. Extended-Hours Dollar Volume: $20,639,748
Applied Optoelectronics, Inc. ( AAOI ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in AAOI indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 85.7%
Average next regular session additional gain: 10.3%
Over the prior three fiscal years (12 quarters), when shares of AAOI rose in the extended-hours session in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock posted additional gains in the following regular session by an average of 10.3%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 66.7%
Average next regular session additional loss: 7%
Over that same historical period, when shares of AAOI dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 7.0% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 85.7% Average next regular session additional gain: 10.3% Over the prior three fiscal years (12 quarters), when shares of AAOI rose in the extended-hours session in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock posted additional gains in the following regular session by an average of 10.3%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 66.7% Average next regular session additional loss: 7% Over that same historical period, when shares of AAOI dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 7.0% by the following regular session close. Extended-Hours Dollar Volume: $20,639,748 Applied Optoelectronics, Inc. ( AAOI ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
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Historical earnings event related premarket and after-hours trading activity in AAOI indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 85.7% Average next regular session additional gain: 10.3% Over the prior three fiscal years (12 quarters), when shares of AAOI rose in the extended-hours session in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock posted additional gains in the following regular session by an average of 10.3%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 66.7% Average next regular session additional loss: 7% Over that same historical period, when shares of AAOI dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 7.0% by the following regular session close.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 85.7% Average next regular session additional gain: 10.3% Over the prior three fiscal years (12 quarters), when shares of AAOI rose in the extended-hours session in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock posted additional gains in the following regular session by an average of 10.3%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 66.7% Average next regular session additional loss: 7% Over that same historical period, when shares of AAOI dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 7.0% by the following regular session close. Extended-Hours Dollar Volume: $20,639,748 Applied Optoelectronics, Inc. ( AAOI ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
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Extended-Hours Dollar Volume: $20,639,748 Applied Optoelectronics, Inc. ( AAOI ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Historical earnings event related premarket and after-hours trading activity in AAOI indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 85.7% Average next regular session additional gain: 10.3% Over the prior three fiscal years (12 quarters), when shares of AAOI rose in the extended-hours session in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock posted additional gains in the following regular session by an average of 10.3%.
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97d08df0-9d65-492c-ae98-6ec3a699591f
|
9717.0
|
2018-02-21 00:00:00 UTC
|
Applied Optoelectronics (AAOI) Tops Earnings Estimates, Stock Falls on Sluggish Guidance
|
AAOI
|
https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-tops-earnings-estimates-stock-falls-sluggish-guidance-2018-02
|
nan
|
nan
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Applied Optoelectronics, Inc. (AAOI) just released its latest quarterly financial results, posting adjusted earnings of 89 cents per share and revenues of $79.9 million.
Currently, AAOI is a Zacks Rank #4 (Sell), but that could change based on today's results. The stock is currently down 11.00% to $30.75 per share in after-hours trading shortly after its earnings report was released.
Applied Optoelectronics:
Beat earnings estimates . The company posted non-GAAP earnings of $0.89 per diluted share, beating the Zacks Consensus Estimate of $0.82.
Missed revenue estimates . The company saw revenue figures of $79.9 million, missing our consensus estimate of $86.22 million.
"We achieved revenue in the fourth quarter of $79.9 million, which was slightly below our expectations due to lower demand from our datacenter customers as they continue to evolve their network architectures. While our revenue came in slightly below expectations, I am pleased with our ability to continue to generate strong gross margin even in a price sensitive market," said CEO Dr. Thompson Lin.
For the first quarter of 2018, AAOI expects revenues in the range of $67.0 million to $71.0 million and non-GAAP earnings in the range of $0.28 to $0.34. Heading into the report, our consensus estimates were calling for Q1 revenues of $88.4 million and earnings of $0.74 per share.
Here's a graph that looks at Applied's recent earnings performance:
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company's products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure.
Check back later for our full analysis on AAOI's earnings report!
Want more market analysis from this author? Make sure to follow @ Ryan_McQueeneyon Twitter!
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, Inc. (AAOI) just released its latest quarterly financial results, posting adjusted earnings of 89 cents per share and revenues of $79.9 million. Currently, AAOI is a Zacks Rank #4 (Sell), but that could change based on today's results. For the first quarter of 2018, AAOI expects revenues in the range of $67.0 million to $71.0 million and non-GAAP earnings in the range of $0.28 to $0.34.
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Applied Optoelectronics, Inc. (AAOI) just released its latest quarterly financial results, posting adjusted earnings of 89 cents per share and revenues of $79.9 million. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Currently, AAOI is a Zacks Rank #4 (Sell), but that could change based on today's results.
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Applied Optoelectronics, Inc. (AAOI) just released its latest quarterly financial results, posting adjusted earnings of 89 cents per share and revenues of $79.9 million. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Currently, AAOI is a Zacks Rank #4 (Sell), but that could change based on today's results.
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Applied Optoelectronics, Inc. (AAOI) just released its latest quarterly financial results, posting adjusted earnings of 89 cents per share and revenues of $79.9 million. Currently, AAOI is a Zacks Rank #4 (Sell), but that could change based on today's results. For the first quarter of 2018, AAOI expects revenues in the range of $67.0 million to $71.0 million and non-GAAP earnings in the range of $0.28 to $0.34.
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55144ced-d066-43e7-9355-d0836311425f
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9718.0
|
2018-02-21 00:00:00 UTC
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How to Invest with Confidence
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AAOI
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https://www.nasdaq.com/articles/how-invest-confidence-2018-02-21
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nan
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nan
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(1: 30 ) - Investing With Confidence During Market Correction
(6: 20 ) - How Earnings Reports Impact Stocks
(11: 00 ) - Should You Be Buying What You Know?
(15: 45 ) - Where Is It Safe To Invest?
(19: 15 ) - Should You Own The FANG Stocks?
(23: 00 ) - 2018 Stock Tips
(27: 50 ) - Episode Roundup: WMT, AAOI, VOO, SPY, VB, FANG stocks
Welcome to Episode #120 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Dave Bartosiak, Editor of Zacks Momentum Trader and Surprise Trader portfolios, joined Tracey to discuss a topic that has become important in 2018 thanks to the recent stock market correction: how to invest with confidence.
Tracey has been getting a lot of questions on Twitter and Stocktwits about what to do when stocks get volatile.
How do investors stay in the game?
What Can You Do to Boost Your Confidence?
1. Start out small and dollar cost average. If you're putting in something every month, you can ride out the ups and downs more easily. You're buying at the highs, but also at the lows.
2. It's okay to buy ETFs. You don't have to be solely in stocks. If they're too volatile, consider buying the S&P 500 ETFs like the Vanguard S&P 500 ETF VOO or the SPDR S&P 500 SPY or buy the small caps through an ETF like the Vanguard Small-Cap ETF (VB) .
3. Should you buy the big caps, like a Walmart WMT versus the small caps such as Applied Optoelectronics AAOI ? Tracey and Dave discuss the pros and cons.
Remember, no investment is ever truly "safe" but investors have to gauge their own risk tolerance. It's different for every investor.
Dave also has a secret screen he does to try and find the best stocks.
What is it?
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(23: 00 ) - 2018 Stock Tips (27: 50 ) - Episode Roundup: WMT, AAOI, VOO, SPY, VB, FANG stocks Welcome to Episode #120 of the Zacks Market Edge Podcast. Should you buy the big caps, like a Walmart WMT versus the small caps such as Applied Optoelectronics AAOI ? Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports VIPERS-SM CAP (VB): ETF Research Reports VANGD-SP5 ETF (VOO): ETF Research Reports Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here.
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(23: 00 ) - 2018 Stock Tips (27: 50 ) - Episode Roundup: WMT, AAOI, VOO, SPY, VB, FANG stocks Welcome to Episode #120 of the Zacks Market Edge Podcast. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports VIPERS-SM CAP (VB): ETF Research Reports VANGD-SP5 ETF (VOO): ETF Research Reports Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Should you buy the big caps, like a Walmart WMT versus the small caps such as Applied Optoelectronics AAOI ?
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports VIPERS-SM CAP (VB): ETF Research Reports VANGD-SP5 ETF (VOO): ETF Research Reports Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. (23: 00 ) - 2018 Stock Tips (27: 50 ) - Episode Roundup: WMT, AAOI, VOO, SPY, VB, FANG stocks Welcome to Episode #120 of the Zacks Market Edge Podcast. Should you buy the big caps, like a Walmart WMT versus the small caps such as Applied Optoelectronics AAOI ?
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(23: 00 ) - 2018 Stock Tips (27: 50 ) - Episode Roundup: WMT, AAOI, VOO, SPY, VB, FANG stocks Welcome to Episode #120 of the Zacks Market Edge Podcast. Should you buy the big caps, like a Walmart WMT versus the small caps such as Applied Optoelectronics AAOI ? Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports VIPERS-SM CAP (VB): ETF Research Reports VANGD-SP5 ETF (VOO): ETF Research Reports Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here.
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7fd438bd-e1fa-45f6-9894-c85e3dcc438a
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9719.0
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2018-02-20 00:00:00 UTC
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Here’s the Perfect Trade in Applied Optoelectronics Inc Stock
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AAOI
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https://www.nasdaq.com/articles/heres-perfect-trade-applied-optoelectronics-inc-stock-2018-02-20
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) has been a very troubled name. AAOI stock popped up on our radar when shares soared from sub-$10 in mid-2016 to more than $100 just 12 months later. However, that was the peak for Applied Opto stock as it then cratered more than $70 per share to $30, a fall of more than 70%.
So surely, some are wondering if now is the time to pull the trigger and scoop up AAOI stock.
About a month ago, management set a firm date for earnings. The quarterly results will hit the wires on February 21, assuming the company sticks to its current plan. However, unlike the previous few quarters, the announcement did not follow a downbeat pre-announcement, something investors had gotten used to. That's got some investors optimistic that the results might not be bad.
5 Cheap Dividend Stocks With Growing Payouts
For the quarter, analysts expect earnings per share of 83 cents and revenue of $85.5 million. This would represent year-over-year sales growth of less than 1% and a 1-cent-per-share decline in earnings. Notably, three months ago, analysts were looking for 96 cents per share from the company. So clearly expectations are in decline. When looking at the chart though, that's not much of a surprise.
Applied Opto stock has suffered over the past few quarters as demand in China has tempered. Margin pressure from tougher competition hasn't been helping either. Pressure on sales and profitability is never a good sign, especially for a company like this.
Valuing Applied Opto Stock
Applied Opto stock is still in fiscal 2017 and currently trades at just seven times 2017 earnings. That's a pretty low number considering forecasts calling for 48% sales growth and more than triple the earnings AAOI had in 2016.
So what gives? Well, perhaps the most obvious problem is 2018. Analysts expect earnings per share to fall from $4.55 this year to just $3.44 next year. While it's still much better than 2016's earnings of $1.39 per share, it also marks a decline of more than 24%. In addition to the drop in earnings expectations, forecasts only call for a 1.6% gain in sales.
In AAOI's case, we have slight revenue growth and a big decline in earnings. That doesn't bode well for margins either, as the bottom line is declining despite expectations for a stable top line. On top of that, we don't know if analysts' estimates are low enough.
Currently, AAOI stock trades at 9.3 times 2018 earnings. On the plus side, this is still a pretty low valuation. But the business is volatile and as we've seen in the past, that puts the stock at a discount. For instance, look at Micron Technology, Inc. (NASDAQ: MU ). Shares trade at roughly 4 times earnings despite analysts calling for strong growth in 2018 and following an incredible 2017. In fact, that goes for stocks likeApplied Materials, Inc. (NASDAQ: AMAT ) and Lam Research Corporation (NASDAQ: LRCX ) as well.
The bottom line? When the business is volatile, the stocks come at a discount. In many cases, we see the opposite is true as well. Many blue-chip stocks may not have the strongest growth, but they tend to come with premium valuations simply because their businesses are dependable.
Trading Applied Opto Stock
AAOI stock is down more than 70% from its highs and just hit 52-week lows last week. Some investors might be considering overlooking its questionable reliability in lieu of its low valuation and possibly attractive stock chart. Below are two charts, the first a long-term weekly and the second a one-year chart.
Click to Enlarge
Click to Enlarge
As you can see in the long-term chart, the bounce near $29 could ultimately act as support for AAOI stock. As promising as this setup looks though, investors need something to happen first. On the short-term chart, we can see the "descending triangle" in AAOI stock. This is a bearish setup and there's really no telling when the selling will exhaust.
While we can't see when it will happen, we can see when it has happened. When AAOI stock breaks out over the top of its descending triangle, investors who want to play this name can consider buying. These setups are attractive because the risk-reward profile tends to be so reasonable. We would look to play a strong rally in the name while using a stop-loss on AAOI if it re-enters the descending triangle.
7 Rock-Solid Stocks to Hold On for Dear Life
One additional note: Remember that AAOI reports earnings on Wednesday after the close .
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell held a long position in MU.
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The post Here's the Perfect Trade in Applied Optoelectronics Inc Stock appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Rock-Solid Stocks to Hold On for Dear Life One additional note: Remember that AAOI reports earnings on Wednesday after the close . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) has been a very troubled name. AAOI stock popped up on our radar when shares soared from sub-$10 in mid-2016 to more than $100 just 12 months later.
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Trading Applied Opto Stock AAOI stock is down more than 70% from its highs and just hit 52-week lows last week. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) has been a very troubled name. AAOI stock popped up on our radar when shares soared from sub-$10 in mid-2016 to more than $100 just 12 months later.
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Trading Applied Opto Stock AAOI stock is down more than 70% from its highs and just hit 52-week lows last week. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) has been a very troubled name. AAOI stock popped up on our radar when shares soared from sub-$10 in mid-2016 to more than $100 just 12 months later.
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Currently, AAOI stock trades at 9.3 times 2018 earnings. Trading Applied Opto Stock AAOI stock is down more than 70% from its highs and just hit 52-week lows last week. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) has been a very troubled name.
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7f71adcd-7e66-43c7-a57c-7bf20709e1c7
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9720.0
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2018-02-12 00:00:00 UTC
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Why Applied Optoelectronics Inc. Stock Fell 14% in January
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-inc-stock-fell-14-january-2018-02-12
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nan
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nan
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What happened
Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 14.4% in January, according to data from S&P Global Market Intelligence . One bearish analyst note did most of the damage.
So what
On Jan. 9, analyst firm Rosenblatt said that Applied Optoelectronics seemed to be losing some business to optical components rival InnoLight in several key accounts, including largest customer Amazon.com (NASDAQ: AMZN) and global computing giant Facebook (NASDAQ: FB) . Amazon alone accounted for more than half of Applied Optoelectronics' data center revenues in November's third-quarter report, so any share loss there could do terrible damage to the company's top and bottom lines.
Now what
One analyst report isn't necessarily the gospel truth, of course. We'll know more next week, as Applied Optoelectronics is set to report fourth-quarter results on Feb. 22. Until then, I'd note that the stock is trading at just 7.1 times trailing earnings. It's easy to imagine a strong bounce for this troubled stock if -- if -- Applied Optoelectronics can prove the doubters wrong.
10 stocks we like better than Applied Optoelectronics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and Facebook. The Motley Fool has the following options: short March 2018 $200 calls on Facebook and long March 2018 $170 puts on Facebook. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 14.4% in January, according to data from S&P Global Market Intelligence . Amazon alone accounted for more than half of Applied Optoelectronics' data center revenues in November's third-quarter report, so any share loss there could do terrible damage to the company's top and bottom lines. *Stock Advisor returns as of February 5, 2018 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 14.4% in January, according to data from S&P Global Market Intelligence . The Motley Fool owns shares of and recommends Amazon and Facebook.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 14.4% in January, according to data from S&P Global Market Intelligence . So what On Jan. 9, analyst firm Rosenblatt said that Applied Optoelectronics seemed to be losing some business to optical components rival InnoLight in several key accounts, including largest customer Amazon.com (NASDAQ: AMZN) and global computing giant Facebook (NASDAQ: FB) . Amazon alone accounted for more than half of Applied Optoelectronics' data center revenues in November's third-quarter report, so any share loss there could do terrible damage to the company's top and bottom lines.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) fell 14.4% in January, according to data from S&P Global Market Intelligence . Amazon alone accounted for more than half of Applied Optoelectronics' data center revenues in November's third-quarter report, so any share loss there could do terrible damage to the company's top and bottom lines. Now what One analyst report isn't necessarily the gospel truth, of course.
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06773475-5777-4230-aad0-536a322c2646
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9721.0
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2018-01-29 00:00:00 UTC
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Tech Today: Cutting iPhone X, Hating Fiber Optics, Loving Big Tech
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AAOI
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https://www.nasdaq.com/articles/tech-today-cutting-iphone-x-hating-fiber-optics-loving-big-tech-2018-01-29
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nan
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nan
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Here are some things going on today in your world of tech :
Apple (AAPL) is set to report results for the December-ending fiscal Q1 this Thursday, and it's time to speed up those iPhone estimate cuts.
Staff of The Nikkei Asian Reviewthis morning relate that Apple is cutting its production orders for the iPhone X, to 20 million, from what was originally envisioned, without citing sources, with Apple said to have seen "slower-than-expected sales in the year-end holiday shopping season in key markets such as Europe, the U.S. and China."
Apple shares are down $2.88, or 1.7%, at $168.63.
Given that the report is citing the high cost of the OLED -based iPhone, the rumor is not helping shares of Universal Display (OLED), which makes some of the technology that goes into the displays. Shares are down $7.05, or 4%, at $163.40.
A couple of parties are picking through what all this means for Universal.
C J Muse of Evercore ISI reiterates an Outperform rating on Universal stock, writing that "we view this hiccup as transitory as OLED smartphone panel costs are driven down rapidly over the medium-term (we think to ~$70 per panel in 3Q18 from ~$110 today; more cost cuts thereafter)."
But Hendi Susanto of Gabelli & Co., who has a Hold rating on Universal, writes that the company's outlook for 2018's revenue will be "of great importance as investors will measure the magnitude of material sales growth and the growth trajectory of royalty and licensing fees."
Walking away from fiber optics
The fiber optic names get multiple downgrades this morning from Piper Jaffray's Troy Jensen, who cuts his ratings on Applied Optoelectronics (AAOI), Neophotonics (NPTN), and Finisar (FNSR) to Neutral from Overweight, while slashing price targets, citing a variety of risks to the individual names. For all three, he concludes that the stocks will have to wait until the " 400G " networking cycle begins next year.
All three stocks are down sharply this morning.
It's a good morning, though, for large-cap techs.
Amazon (AMZN) shares are up $10.31, or 0.7%, at $1,412.36, after Citgroup's Mark May reiterated a Buy rating and raised his price target to $1,6000 from $1,400, predicting that the company's advertising business will rise five-fold to $50.6 billion over the next decade, according to a summary by The Fly on the Wall.
Shares of Alphabet (GOOGL) are up 97 cents at $1,188.53, after Monness Crespi Hardt's James Cakmak this morning reiterated a Buy rating, and raised his price target to $1,250 from $1,120, wiring that the "next leg for Google shares continuing to point up," as advantages such as its scale in advertising, and possibilities such as subscription revenue for YouTube, outweigh the fact the company is on a "collision course" with Amazon.
Netflix (NFLX) shares are up $6.91, or 3%, at $281.51, after Rob Sanderson of MKM Partners reiterated a Buy rating, and raises his price target to $320 from $245, writing that the "peak for subscriber additions is still a few years away."
And shares of Facebook (FB) are down 1.80, or 1%, at $188.20, despite a price target increase to $225 from $220 at Deutsche Bank.
Intel scrutinized
Intel (INTC) notified some Chinese chip customers last year about the " Spectre " and " Meltdown " computer vulnerabilities before it notified U.S. authorities, according to a report this morning by Fox Business Network's Robert McMillan and Liza Lin, citing multiple unnamed sources.
Intel shares are up 5 cents at $50.13.
American Great Wall?
Speaking of China, Axios's Jonathan Swan, David McCabe, Ina Fried and Kim Hartyesterday wrote that the administration of U.S. president Donald Trump is considering creating a "centralized," government controlled network using the next stage in cellular technology, the 5G networking form that is just now starting to be deployed in a test fashion by telcos globally, as a protection against cyber attacks by China.
The authors write that they have obtained "a PowerPoint and a memo" produced by "a senior National Security Council official" that were presented to members of the administration, describing a single network paid for and built by the U.S. government.
The article suggests that the option of having telcos themselves build multiple networks is "not an option," as far as the administration is concerned.
Soft Pay?
Speaking of ambitious efforts, Japanese investment holding company SoftBank (9984JP) is planning a global electronic payments network, to challenge Apple's Apple Pay, PayPal, and others, according to a report this morning by The Times of England's Ben Harrington.
Among earnings reports after market close, expect Rambus (RMBS), Integrated Device (IDTI), and also the follow-up from Sanmina-SCI (SANM) after that disappointing profit warning a week ago Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Walking away from fiber optics The fiber optic names get multiple downgrades this morning from Piper Jaffray's Troy Jensen, who cuts his ratings on Applied Optoelectronics (AAOI), Neophotonics (NPTN), and Finisar (FNSR) to Neutral from Overweight, while slashing price targets, citing a variety of risks to the individual names. Amazon (AMZN) shares are up $10.31, or 0.7%, at $1,412.36, after Citgroup's Mark May reiterated a Buy rating and raised his price target to $1,6000 from $1,400, predicting that the company's advertising business will rise five-fold to $50.6 billion over the next decade, according to a summary by The Fly on the Wall. The authors write that they have obtained "a PowerPoint and a memo" produced by "a senior National Security Council official" that were presented to members of the administration, describing a single network paid for and built by the U.S. government.
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Walking away from fiber optics The fiber optic names get multiple downgrades this morning from Piper Jaffray's Troy Jensen, who cuts his ratings on Applied Optoelectronics (AAOI), Neophotonics (NPTN), and Finisar (FNSR) to Neutral from Overweight, while slashing price targets, citing a variety of risks to the individual names. Shares of Alphabet (GOOGL) are up 97 cents at $1,188.53, after Monness Crespi Hardt's James Cakmak this morning reiterated a Buy rating, and raised his price target to $1,250 from $1,120, wiring that the "next leg for Google shares continuing to point up," as advantages such as its scale in advertising, and possibilities such as subscription revenue for YouTube, outweigh the fact the company is on a "collision course" with Amazon. Netflix (NFLX) shares are up $6.91, or 3%, at $281.51, after Rob Sanderson of MKM Partners reiterated a Buy rating, and raises his price target to $320 from $245, writing that the "peak for subscriber additions is still a few years away."
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Walking away from fiber optics The fiber optic names get multiple downgrades this morning from Piper Jaffray's Troy Jensen, who cuts his ratings on Applied Optoelectronics (AAOI), Neophotonics (NPTN), and Finisar (FNSR) to Neutral from Overweight, while slashing price targets, citing a variety of risks to the individual names. Shares of Alphabet (GOOGL) are up 97 cents at $1,188.53, after Monness Crespi Hardt's James Cakmak this morning reiterated a Buy rating, and raised his price target to $1,250 from $1,120, wiring that the "next leg for Google shares continuing to point up," as advantages such as its scale in advertising, and possibilities such as subscription revenue for YouTube, outweigh the fact the company is on a "collision course" with Amazon. Intel scrutinized Intel (INTC) notified some Chinese chip customers last year about the " Spectre " and " Meltdown " computer vulnerabilities before it notified U.S. authorities, according to a report this morning by Fox Business Network's Robert McMillan and Liza Lin, citing multiple unnamed sources.
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Walking away from fiber optics The fiber optic names get multiple downgrades this morning from Piper Jaffray's Troy Jensen, who cuts his ratings on Applied Optoelectronics (AAOI), Neophotonics (NPTN), and Finisar (FNSR) to Neutral from Overweight, while slashing price targets, citing a variety of risks to the individual names. Here are some things going on today in your world of tech : Apple (AAPL) is set to report results for the December-ending fiscal Q1 this Thursday, and it's time to speed up those iPhone estimate cuts. Apple shares are down $2.88, or 1.7%, at $168.63.
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dbfedeae-514e-43a1-8fa5-cdecfa03efd4
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9722.0
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2018-01-26 00:00:00 UTC
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Analysts Are Expecting 100G Transceivers to Be Huge for Applied Optoelectronics -- Here's Why They're Right
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AAOI
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https://www.nasdaq.com/articles/analysts-are-expecting-100g-transceivers-be-huge-applied-optoelectronics-heres-why-theyre
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nan
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nan
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Fiber-optic hardware maker Applied Optoelectronics (NASDAQ: AAOI) had an interesting 2017, to say the least .
First, shares surged amid heavy order volumes from Amazon.com (NASDAQ: AMZN) , which needs high-speed networking tools by the boatload to keep data flowing correctly through its huge and numerous data centers. The stock's value quadrupled between January and early August. Life was good.
Then things took a dark turn -- and quickly.
What went wrong
Chinese regulators clamped down on the country's telecoms, mandating slower infrastructure investments until the next generation of wired and wireless networking standards had been worked out. This is clearly a temporary issue, but Applied Optoelectronics is tightly bound to the fortunes of network equipment builders in China.
Moreover, the latest and greatest portfolio of 40-gigabit optoelectronic transceivers swiftly became old hat when several companies -- including Applied Optoelectronics -- introduced some even faster 100-gigabit alternatives. The demand for these improved technologies caught everyone by surprise, making 40G stockpiles difficult to sell. So the company was caught up in these dual downtrends. Share prices plunged 39% lower in August alone, and the stock is trading 64% below last summer's 52-week highs in early 2018.
100G transceivers to the rescue!
Many sector analysts agree that the key to a swift and full recovery lies in ramping up production of 100G modules in a hurry. The autumnal plunge centered squarely on mismatched supply-and-demand equations, led by Amazon nearly halting its 40G orders overnight.
According to analyst firm Cowen & Co., Applied Optoelectronics is poised to bounce back like a champ. The firm's checks are not showing any market-share losses to large data center customers, which includes the all-important Amazon account. This stability holds for both the new 100G modules and for what's left of the shrinking 40G market.
Revenue from 100G items is building up steam, with various products in that category growing sales at 40%-60% levels from one quarter to the next. In November's third-quarter report, 100G products accounted for 56% of all data center orders and continued to grow at strong double-digit percentage rates.
Analyst Alex Henderson from Needham is worried about pricing pressure as Applied Optoelectronics jockeys for market share with several high-quality rivals. But the balance between supply and demand should straighten up quickly when the module manufacturers get their 100G-manufacturing ducks in a row.
What's next for Applied Optoelectroincs?
Any way you slice it, 40G transceivers are essentially an obsolete product generation now and 100G versions are what matters most for the next several quarters. Applied Optoelectronics will sink or swim with its performance in this crucial market.
This situation won't hold forever, of course. Applied Optoelectronics is already working on 200G and 400G transceiver modules, hoping to make a real market out of these ultra-fast technologies within a couple of years. But these upgrades won't move the company's top or bottom lines -- nor its share price -- for years to come. So let's focus on 100G transceivers right now, because that's what Applied Optoelectronics and its major customers are doing.
10 stocks we like better than Applied Optoelectronics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fiber-optic hardware maker Applied Optoelectronics (NASDAQ: AAOI) had an interesting 2017, to say the least . What went wrong Chinese regulators clamped down on the country's telecoms, mandating slower infrastructure investments until the next generation of wired and wireless networking standards had been worked out. Analyst Alex Henderson from Needham is worried about pricing pressure as Applied Optoelectronics jockeys for market share with several high-quality rivals.
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Fiber-optic hardware maker Applied Optoelectronics (NASDAQ: AAOI) had an interesting 2017, to say the least . Moreover, the latest and greatest portfolio of 40-gigabit optoelectronic transceivers swiftly became old hat when several companies -- including Applied Optoelectronics -- introduced some even faster 100-gigabit alternatives. The firm's checks are not showing any market-share losses to large data center customers, which includes the all-important Amazon account.
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Fiber-optic hardware maker Applied Optoelectronics (NASDAQ: AAOI) had an interesting 2017, to say the least . Moreover, the latest and greatest portfolio of 40-gigabit optoelectronic transceivers swiftly became old hat when several companies -- including Applied Optoelectronics -- introduced some even faster 100-gigabit alternatives. Applied Optoelectronics is already working on 200G and 400G transceiver modules, hoping to make a real market out of these ultra-fast technologies within a couple of years.
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Fiber-optic hardware maker Applied Optoelectronics (NASDAQ: AAOI) had an interesting 2017, to say the least . Applied Optoelectronics is already working on 200G and 400G transceiver modules, hoping to make a real market out of these ultra-fast technologies within a couple of years. That's right -- they think these 10 stocks are even better buys.
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cc1d6f8f-6f16-4ea1-a286-ecd8cc7dd033
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9723.0
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2018-01-17 00:00:00 UTC
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Why Optical Networking Stocks Had a Difficult Year in 2017
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AAOI
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https://www.nasdaq.com/articles/why-optical-networking-stocks-had-difficult-year-2017-2018-01-17
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nan
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nan
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What happened
Fiber-optic networking stocks had a wild year in 2017. According to data from S&P Global Market Intelligence , shares of Applied Optoelectronics (NASDAQ: AAOI) raced to a 325% gain at the end of July only to complete the year with a far smaller 61.35% gain. Meanwhile, Oclaro (NASDAQ: OCLR) investors took a 24.7% haircut last year, and Finisar (NASDAQ: FNSR) suffered a 32.8% loss.
So what
In the first half, Applied Optoelectronics ran far ahead of the pack as its largest customer, Amazon.com (NASDAQ: AMZN) , ordered up tons of additional fiber modules for use in the e-commerce and cloud computing giant's data centers.
Zooming in on the last five months of the year, all of these tickers traded as a fairly coherent group. The chart lines are uniformly punctuated by drastic drops around their earnings reports in October, for much the same reasons.
OCLR data by YCharts
There are two issues at play here.
First, the optical networking industry as a whole is moving on from transceiver modules that can handle 40 gigabits of data per second and into the newer, faster 100-gigabit generation. This changeover is putting a lot of stress on the manufacturing lines of Oclaro, Finisar, and Applied Optoelectronics alike, and their clients would really love to complete the shift faster than the production lines can be modified and upgraded. So their growth isn't quite what investors had expected or hoped for.
Second, the world's largest networking market is facing timid infrastructure upgrade budgets amid regulatory pressure. Chinese regulators are debating the requirements of next-generation network standards, causing both equipment builders and telecom operators to tap their brakes on hardware investments. This is the specific issue behind those drastic drops in October, and also Applied Optoelectronics' 39% plunge in August .
Now what
The Chinese order slowdown is obviously a temporary issue, and the changeover between technology generations isn't permanent either. That's why I'm convinced that we're looking at a trough period in the history of fiber-optic networking investments, and that most of these trodden-down tickers should come roaring back to life when market conditions improve.
All of the tickers discussed seem likely to make it through these difficult quarters relatively unblemished. Oclaro and Applied Optoelectronics boast net profit margins north of the 20% mark, while Finisar lags a bit behind at 14%. On the other hand, Finisar's cash-rich balance sheet and more substantial economies of scale should keep this company afloat anyhow.
With double-digit earnings growth and price to earnings ratios below 13, all three are tempting buys right now . And if you expect the rough market conditions to trigger consolidation in the optical networking industry, Applied Optoelectronics looks like the most likely buyout target thanks to a low enterprise value, bargain-bin valuation ratios, and skyrocketing revenue growth.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to data from S&P Global Market Intelligence , shares of Applied Optoelectronics (NASDAQ: AAOI) raced to a 325% gain at the end of July only to complete the year with a far smaller 61.35% gain. So what In the first half, Applied Optoelectronics ran far ahead of the pack as its largest customer, Amazon.com (NASDAQ: AMZN) , ordered up tons of additional fiber modules for use in the e-commerce and cloud computing giant's data centers. And if you expect the rough market conditions to trigger consolidation in the optical networking industry, Applied Optoelectronics looks like the most likely buyout target thanks to a low enterprise value, bargain-bin valuation ratios, and skyrocketing revenue growth.
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According to data from S&P Global Market Intelligence , shares of Applied Optoelectronics (NASDAQ: AAOI) raced to a 325% gain at the end of July only to complete the year with a far smaller 61.35% gain. Meanwhile, Oclaro (NASDAQ: OCLR) investors took a 24.7% haircut last year, and Finisar (NASDAQ: FNSR) suffered a 32.8% loss. And if you expect the rough market conditions to trigger consolidation in the optical networking industry, Applied Optoelectronics looks like the most likely buyout target thanks to a low enterprise value, bargain-bin valuation ratios, and skyrocketing revenue growth.
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According to data from S&P Global Market Intelligence , shares of Applied Optoelectronics (NASDAQ: AAOI) raced to a 325% gain at the end of July only to complete the year with a far smaller 61.35% gain. This changeover is putting a lot of stress on the manufacturing lines of Oclaro, Finisar, and Applied Optoelectronics alike, and their clients would really love to complete the shift faster than the production lines can be modified and upgraded. And if you expect the rough market conditions to trigger consolidation in the optical networking industry, Applied Optoelectronics looks like the most likely buyout target thanks to a low enterprise value, bargain-bin valuation ratios, and skyrocketing revenue growth.
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According to data from S&P Global Market Intelligence , shares of Applied Optoelectronics (NASDAQ: AAOI) raced to a 325% gain at the end of July only to complete the year with a far smaller 61.35% gain. Meanwhile, Oclaro (NASDAQ: OCLR) investors took a 24.7% haircut last year, and Finisar (NASDAQ: FNSR) suffered a 32.8% loss. So their growth isn't quite what investors had expected or hoped for.
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1b8da71d-51ba-4d77-96e7-97242ae0edbc
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9724.0
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2018-01-16 00:00:00 UTC
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Noteworthy Tuesday Option Activity: PH, AAOI, PPG
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AAOI
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-ph-aaoi-ppg-2018-01-16
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Parker Hannifin Corp (Symbol: PH), where a total volume of 7,131 contracts has been traded thus far today, a contract volume which is representative of approximately 713,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 89.9% of PH's average daily trading volume over the past month, of 793,220 shares. Especially high volume was seen for the $205 strike put option expiring February 16, 2018 , with 1,519 contracts trading so far today, representing approximately 151,900 underlying shares of PH. Below is a chart showing PH's trailing twelve month trading history, with the $205 strike highlighted in orange:
Applied Optoelectronics Inc (Symbol: AAOI) options are showing a volume of 9,651 contracts thus far today. That number of contracts represents approximately 965,100 underlying shares, working out to a sizeable 83.9% of AAOI's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $40 strike call option expiring March 16, 2018 , with 1,447 contracts trading so far today, representing approximately 144,700 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange:
And PPG Industries Inc (Symbol: PPG) saw options trading volume of 8,886 contracts, representing approximately 888,600 underlying shares or approximately 81.9% of PPG's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $115 strike call option expiring February 16, 2018 , with 4,429 contracts trading so far today, representing approximately 442,900 underlying shares of PPG. Below is a chart showing PPG's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for PH options , AAOI options , or PPG options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $40 strike call option expiring March 16, 2018 , with 1,447 contracts trading so far today, representing approximately 144,700 underlying shares of AAOI. Below is a chart showing PH's trailing twelve month trading history, with the $205 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) options are showing a volume of 9,651 contracts thus far today. That number of contracts represents approximately 965,100 underlying shares, working out to a sizeable 83.9% of AAOI's average daily trading volume over the past month, of 1.1 million shares.
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Below is a chart showing PH's trailing twelve month trading history, with the $205 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) options are showing a volume of 9,651 contracts thus far today. Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange: And PPG Industries Inc (Symbol: PPG) saw options trading volume of 8,886 contracts, representing approximately 888,600 underlying shares or approximately 81.9% of PPG's average daily trading volume over the past month, of 1.1 million shares. That number of contracts represents approximately 965,100 underlying shares, working out to a sizeable 83.9% of AAOI's average daily trading volume over the past month, of 1.1 million shares.
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Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange: And PPG Industries Inc (Symbol: PPG) saw options trading volume of 8,886 contracts, representing approximately 888,600 underlying shares or approximately 81.9% of PPG's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing PH's trailing twelve month trading history, with the $205 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) options are showing a volume of 9,651 contracts thus far today. That number of contracts represents approximately 965,100 underlying shares, working out to a sizeable 83.9% of AAOI's average daily trading volume over the past month, of 1.1 million shares.
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Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange: And PPG Industries Inc (Symbol: PPG) saw options trading volume of 8,886 contracts, representing approximately 888,600 underlying shares or approximately 81.9% of PPG's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing PH's trailing twelve month trading history, with the $205 strike highlighted in orange: Applied Optoelectronics Inc (Symbol: AAOI) options are showing a volume of 9,651 contracts thus far today. That number of contracts represents approximately 965,100 underlying shares, working out to a sizeable 83.9% of AAOI's average daily trading volume over the past month, of 1.1 million shares.
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5811c35f-d8fd-4397-905f-bfb4be685929
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9725.0
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2018-01-09 00:00:00 UTC
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Why Is Applied Optoelectronics (AAOI) Stock Tumbling Today?
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-aaoi-stock-tumbling-today-2018-01-09
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nan
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nan
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Shares of Applied Optoelectronics AAOI were down more than 5% in morning trading Tuesday after an analyst note suggested that two of its largest customers could be taking their business to a key rival. AAOI has now tumbled more than 60% from the highs it reached in July.
According to Rosenblatt's Jun Zhang, both Facebook FB and Amazon AMZN may be transferring a share of their optical equipment load to InnoLight Technology Corporation, a subsidiary of China's Shandong Zhongji Electrical Equipment Company.
Zhang's note suggests that the shift to InnoLight is inspired by the Chinese government's push to grow its presence in the optical component industry amid growing demand, especially in the 5G market. Domestic tech giants Huawei and ZTE may opt for internal client-side modules in 2018, for example.
Applied Optoelectronics provides fiber-optic networking solutions, primarily for the cable television, fiber-to-the-home, and datacenter markets. The company manufactures products at varying levels of integration-from components and modules to complete turn-key equipment.
As for now, Applied sees about 80% of its total revenue from its datacenter operations. The firm's three largest customers in this segment are Facebook, Amazon, and Microsoft MSFT .
Shares of AAOI soared in the first six months of 2017 as investors recognized that the growth of these companies' cloud operations should help suppliers like Applied, but the stock has come crashing back down amid concerns that its customers are fleeing.
As Zacks Equity Strategist Tracey Ryniec highlighted in a recent " Bear of the Day " profile of AAOI, management expects fourth quarter revenue to be flat to slightly lower than its already-soft Q3 results. "Given the lower fourth quarter guidance of just $81 to $90 million, it has likely seen erosion from either Facebook or Microsoft in the fourth quarter," she added.
Want morestock market analysisfrom this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Applied Optoelectronics AAOI were down more than 5% in morning trading Tuesday after an analyst note suggested that two of its largest customers could be taking their business to a key rival. Shares of AAOI soared in the first six months of 2017 as investors recognized that the growth of these companies' cloud operations should help suppliers like Applied, but the stock has come crashing back down amid concerns that its customers are fleeing. As Zacks Equity Strategist Tracey Ryniec highlighted in a recent " Bear of the Day " profile of AAOI, management expects fourth quarter revenue to be flat to slightly lower than its already-soft Q3 results.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Applied Optoelectronics AAOI were down more than 5% in morning trading Tuesday after an analyst note suggested that two of its largest customers could be taking their business to a key rival. AAOI has now tumbled more than 60% from the highs it reached in July.
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Shares of AAOI soared in the first six months of 2017 as investors recognized that the growth of these companies' cloud operations should help suppliers like Applied, but the stock has come crashing back down amid concerns that its customers are fleeing. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Applied Optoelectronics AAOI were down more than 5% in morning trading Tuesday after an analyst note suggested that two of its largest customers could be taking their business to a key rival.
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Shares of Applied Optoelectronics AAOI were down more than 5% in morning trading Tuesday after an analyst note suggested that two of its largest customers could be taking their business to a key rival. AAOI has now tumbled more than 60% from the highs it reached in July. Shares of AAOI soared in the first six months of 2017 as investors recognized that the growth of these companies' cloud operations should help suppliers like Applied, but the stock has come crashing back down amid concerns that its customers are fleeing.
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cf4a961c-aef7-46ea-b397-9e693ca864c9
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9726.0
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2018-01-08 00:00:00 UTC
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Noteworthy Monday Option Activity: AAOI, UAL, AMBA
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AAOI
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-aaoi-ual-amba-2018-01-08
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 4,721 contracts have traded so far, representing approximately 472,100 underlying shares. That amounts to about 43% of AAOI's average daily trading volume over the past month of 1.1 million shares. Especially high volume was seen for the $40 strike call option expiring March 16, 2018 , with 399 contracts trading so far today, representing approximately 39,900 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange:
United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 16,147 contracts, representing approximately 1.6 million underlying shares or approximately 42.6% of UAL's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $70 strike put option expiring February 16, 2018 , with 2,742 contracts trading so far today, representing approximately 274,200 underlying shares of UAL. Below is a chart showing UAL's trailing twelve month trading history, with the $70 strike highlighted in orange:
And Ambarella, Inc. (Symbol: AMBA) saw options trading volume of 3,500 contracts, representing approximately 350,000 underlying shares or approximately 41.9% of AMBA's average daily trading volume over the past month, of 834,535 shares. Particularly high volume was seen for the $85 strike call option expiring February 16, 2018 , with 692 contracts trading so far today, representing approximately 69,200 underlying shares of AMBA. Below is a chart showing AMBA's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for AAOI options , UAL options , or AMBA options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $40 strike call option expiring March 16, 2018 , with 399 contracts trading so far today, representing approximately 39,900 underlying shares of AAOI. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 4,721 contracts have traded so far, representing approximately 472,100 underlying shares. That amounts to about 43% of AAOI's average daily trading volume over the past month of 1.1 million shares.
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Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange: United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 16,147 contracts, representing approximately 1.6 million underlying shares or approximately 42.6% of UAL's average daily trading volume over the past month, of 3.8 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 4,721 contracts have traded so far, representing approximately 472,100 underlying shares. That amounts to about 43% of AAOI's average daily trading volume over the past month of 1.1 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 4,721 contracts have traded so far, representing approximately 472,100 underlying shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $40 strike highlighted in orange: United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 16,147 contracts, representing approximately 1.6 million underlying shares or approximately 42.6% of UAL's average daily trading volume over the past month, of 3.8 million shares. That amounts to about 43% of AAOI's average daily trading volume over the past month of 1.1 million shares.
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Especially high volume was seen for the $40 strike call option expiring March 16, 2018 , with 399 contracts trading so far today, representing approximately 39,900 underlying shares of AAOI. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 4,721 contracts have traded so far, representing approximately 472,100 underlying shares. That amounts to about 43% of AAOI's average daily trading volume over the past month of 1.1 million shares.
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805b14bc-5bd8-4ec6-ad67-f1940831f078
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9727.0
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2018-01-04 00:00:00 UTC
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G-III Apparel Group, Applied Optoelectronics, Advanced Micro Devices, Intel and Microsoft highlighted as Zacks Bull and Bear of the Day
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AAOI
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https://www.nasdaq.com/articles/g-iii-apparel-group-applied-optoelectronics-advanced-micro-devices-intel-and-microsoft
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nan
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For Immediate Release
Chicago, IL - Jan 04, 2018 - Zacks Equity Research highlights G-III Apparel Group, Ltd GIII as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Advanced Micro DevicesAMD , IntelINTC and MicrosoftMSFT .
Here is a synopsis of all five stocks:
Bull of the Day :
G-III Apparel Group, Ltd has turned it around by focusing on its strong retail brands. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in fiscal 2019.
G-III makes and distributes apparel and accessories under its own brands, private label brands and under licensed brands for department stores and specialty retailers. It operates retail stores under the DKNY, Wilsons Leather, G. H. Bass, Vilebrequin, Calvin Klein Performance and Karl Lagerfeld Paris names.
Its own brands include the powerhouses of Donna Karan, DKNY, Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard. It has fashion licenses to produce for Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Ivanka Trump, Kensie, Levi's and Dockers brands.
It also has a team sports business with licenses for the NFL, the MBL, Major League Baseball, the NHL, Hands High, Touch by Alyssa Milano and more than 100 U.S. colleges and universities.
Record Third Quarter Sales
On Dec 5, 2017, G-III Apparel reported its fiscal third quarter 2018 results and beat the Zacks Consensus by 8.4%. Earnings were $1.67 versus the Zacks Consensus of $1.54.
It was the third earnings beat in a row.
Sales jumped 16% to $1.02 billion from $883.5 million a year ago. That was a new third quarter record and included approximately $88 million from the new DKNY and Donna Karan products.
It saw sustained momentum heading into the end of the year as products were selling well over the holiday season.
Who said the department store was dead?
Raised Full Year Guidance
Given the strong trends, it's not surprising the company raised full year guidance.
Full year earnings are now expected between $1.42 and $1.52, up from the prior guidance of $1.28 to $1.38.
That was above consensus which was at $1.36.
3 estimates have been raised in the last month, pushing the Zacks Consensus up to $1.46. That is earnings growth of just 2.7% however.
But the real gains are expected to come next year when the DKNY and Donna Karan brands really get humming.
The Zacks Consensus has jumped to $1.99 from $1.86 in the last 60 days, which is earnings growth of 36.1%.
Bear of the Day :
Applied Optoelectronics is still hurting from uncertainty as to its data center business. The estimates for 2018 continue to decline on this Zacks Rank #5 (Strong Sell).
Applied Optoelectronics provides fiber-optic networking products, primarily for three networking end-markets: cable television, or CATV, fiber-to-the-home, or FTTH, and Internet data centers. Applied Optoelectronics designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment.
80% of its sales are from data center optical transceivers with 15% from optical elements for the cable TV industry. Its three largest customers in the data center business are Amazon, Microsoft and Facebook.
The Pivot to 100G
The industry is pivoting to 100G from 40G. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
After it lowered its third quarter guidance ahead of its quarterly report, and then projected fourth quarter revenue as being flat to slightly lower, analysts and investors have been jittery on the stock.
Given the lower fourth quarter guidance of just $81 to $90 million, it has likely seen erosion from either Facebook or Microsoft in the fourth quarter.
It doesnt reportearnings again until late February. Unless it gives preliminary numbers, as it did last quarter, there's nothing to do but wait.
Estimates for 2018 Continue to Fall
The analysts appear to be hedging their bets that the pivot isn't going well for AAOI.
2 estimates have been cut for 2018 in the last month pushing the Zacks Consensus Estimate down to $3.61. That's a far cry from the $5.70 estimate from just 90 days ago.
Additional Content:
AMD Stock Continues Surge as Intel Security Woes Continue
Shares of Advanced Micro Devices climbed more than 6% in morning trading Wednesday after the company announced that its processors are not affected by a major security bug that has plagued chips made by competitor Intel.
According to a report from The Register , Intel and affected software developers have been scrambling to fix a hardware issue that could let attackers access security keys, passwords, and cached files. The bug is apparently present in nearly every Intel CPU made within the last decade, and upcoming patches will negatively affect hardware performance.
The root of the problem is a fundamental design flaw that is forcing Linux programmers and Microsoft developers to overhaul Linux and Windows kernels in order to "defang" the bug. In the context of computing, the "kernel" is a core component of the operating system that is tasked with managing the communication between hardware and software.
The patches necessary to fix the bug will move the kernel into an entirely different address space, making the communication process more time consuming and less efficient.
"Really, this shouldn't be needed, but clearly there is a flaw in Intel's silicon that allows kernel access protections to be bypassed in some way," wrote The Register 's John Leyden and Chris Williams.
Intel has attempted to keep the issue under wraps, but an embargo on the specifics of the problem is reportedly set to be lifted early this month. Microsoft is expected to release a patch next Tuesday, while a Linux patch date is less clear. The Register estimates these patches will result in a 5% to 30% slow down, depending on the task and processor model.
Shares of Intel were down more 2.3% in morning trading hours Wednesday. Meanwhile, AMD shares popped more than 6% to continue a two-day surge that has watched the stock gain nearly 14%.
"AMD processors are not subject to the types of attacks that the kernel page table isolation feature protects against," AMD engineer Tom Lendacky confirmed.
Interestingly, the news comes just one day after a collaboration between Intel and AMD grabbed headlines. On Tuesday, via a post on Intel India's website, we learned that Intel's highly-anticipated upcoming CPU with AMD Radeon graphics, the Intel Core i7-8809G, will feature AMD's high-end graphics cores, as opposed to the lower grade "Polaris" GPU.
The inclusion of AMD's high-performance GPU underscores Intel's intent to make the new processor a reasonable option for serious video gamers, who need top-of-the-line hardware to power e-sports games like League of Legends and Counter-Strike: Global Offensive at competitive framerates.
AMD's recent surge follows an almost two-week downturn that coincided with volatility throughout the technology sector. Profit taking and portfolio rebalancing throughout the month of December cooled down some of the hottest tech stocks, but the space has started 2018 on a high note.
Want morestock market analysisfrom this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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About the Bull and Bear of the Day
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Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - Jan 04, 2018 - Zacks Equity Research highlights G-III Apparel Group, Ltd GIII as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers. Estimates for 2018 Continue to Fall The analysts appear to be hedging their bets that the pivot isn't going well for AAOI.
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Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Jan 04, 2018 - Zacks Equity Research highlights G-III Apparel Group, Ltd GIII as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
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Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Jan 04, 2018 - Zacks Equity Research highlights G-III Apparel Group, Ltd GIII as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
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For Immediate Release Chicago, IL - Jan 04, 2018 - Zacks Equity Research highlights G-III Apparel Group, Ltd GIII as the Bull of the Day, Applied Optoelectronics AAOI as the Bear of the Day. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers. Estimates for 2018 Continue to Fall The analysts appear to be hedging their bets that the pivot isn't going well for AAOI.
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f93ef423-ae6d-453e-ab53-056787dea09e
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9728.0
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2018-01-04 00:00:00 UTC
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Bear of the Day: Applied Optoelectronics (AAOI)
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AAOI
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https://www.nasdaq.com/articles/bear-day-applied-optoelectronics-aaoi-2018-01-04
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nan
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nan
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Applied Optoelectronics (AAOI) is still hurting from uncertainty as to its data center business. The estimates for 2018 continue to decline on this Zacks Rank #5 (Strong Sell).
Applied Optoelectronics provides fiber-optic networking products, primarily for three networking end-markets: cable television, or CATV, fiber-to-the-home, or FTTH, and Internet data centers. Applied Optoelectronics designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment.
80% of its sales are from data center optical transceivers with 15% from optical elements for the cable TV industry. Its three largest customers in the data center business are Amazon, Microsoft and Facebook.
The Pivot to 100G
The industry is pivoting to 100G from 40G. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
After it lowered its third quarter guidance ahead of its quarterly report, and then projected fourth quarter revenue as being flat to slightly lower, analysts and investors have been jittery on the stock.
Given the lower fourth quarter guidance of just $81 to $90 million, it has likely seen erosion from either Facebook or Microsoft in the fourth quarter.
It doesnt reportearnings again until late February. Unless it gives preliminary numbers, as it did last quarter, there's nothing to do but wait.
Estimates for 2018 Continue to Fall
The analysts appear to be hedging their bets that the pivot isn't going well for AAOI.
2 estimates have been cut for 2018 in the last month pushing the Zacks Consensus Estimate down to $3.61. That's a far cry from the $5.70 estimate from just 90 days ago.
However, looking on the bright side, the company only made $1.39 in 2016 so even the slashed estimates are still showing tremendous earnings growth compared to just 2 years ago.
It's also fairly cheap. It has a forward P/E of just 10.5.
Shares Remain Depressed
Applied Optoelectronics has fallen 62% from its August 2017 highs.
There will be a lot riding on the next earnings report though. Is it able to make the pivot, with its current big 3 customer base, or is its revenue going to continue to sink?
If you want to invest in this area, you might want to consider one of AAOI's competitors. Oclaro, Inc . (OCLR) is a Zacks Rank #3 (Hold) and it's also cheap, with a forward P/E of 12.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Estimates for 2018 Continue to Fall The analysts appear to be hedging their bets that the pivot isn't going well for AAOI. Applied Optoelectronics (AAOI) is still hurting from uncertainty as to its data center business. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
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Click to get this free report Oclaro, Inc. (OCLR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is still hurting from uncertainty as to its data center business. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
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Click to get this free report Oclaro, Inc. (OCLR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is still hurting from uncertainty as to its data center business. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
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Click to get this free report Oclaro, Inc. (OCLR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is still hurting from uncertainty as to its data center business. But it's been unclear if AAOI could handle the pivot or if its largest customers weren't going to other suppliers.
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c3e2b8ab-5362-4ee2-b238-93cff7fe3cf0
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9729.0
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2018-01-02 00:00:00 UTC
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Here's Why Optical Networking Stocks Fell in December
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AAOI
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https://www.nasdaq.com/articles/heres-why-optical-networking-stocks-fell-december-2018-01-02
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nan
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nan
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What happened
Shares of many optical networking specialists plunged in December 2017, according to data from S&P Global Market Intelligence .
Lumentum Holdings (NASDAQ: LITE) ended the month 9.5% lower, Infinera (NASDAQ: INFN) investors took a 12.6% hit, and Applied Optoelectronics (NASDAQ: AAOI) fell 13.4%. Many others saw smaller price reductions, but these were the industry's biggest losers in December.
So what
The sectorwide plunge started with a negative analyst note on Applied Optoelectronics. The maker of fiber-optic networking components such as lasers and transceivers is a major supplier of networking tools to Amazon.com (NASDAQ: AMZN) , and analyst firm Cowen & Co. fears that Amazon's move to newer and faster transceivers will hurt the company in the short term. Share prices fell 8% on that cautious report, dragging Applied Optoelectronics' peers along for smaller price drops.
Later on, Finisar (NASDAQ: FNSR) broke out of its own slump when Apple (NASDAQ: AAPL) invested $390 million in the company's laser research. These lasers play an important part in the iPhone X's face-scanning features, making Finisar an essential Cupertino partner. Finisar shares surged as much as 30% higher that day , though the gains faded out and Finisar shares closed December just 1.7% higher. But fellow laser-builders Infinera and Applied Optoelectronics fell on the same news, since Apple doesn't seem likely to reach out for alternative laser suppliers after a move like that.
And throughout the month, analysts kept repeating the mantra that Chinese networking investments are picking back up after a tough year -- but slowly. Even a large Lumentum order from China Telecom (NYSE: CHA) only lifted Lumentum's shares by a couple of percent. Between Amazon's generation-shifting networking issues and soft Chinese growth prospects, the fiber-optic networking market as a whole is operating under some dark clouds.
Now what
December's fiber-optic worries were real enough. Still, the long-term view for this industry remains strong.
Telecom and data networks around the world are only speeding up and taking on more bandwidth. Even the wireless improvements inevitably lead to upgrades in the fiber-optic infrastructure that connects cell towers to the internet at large. And you know that cloud computing is running hot when a cloud specialist like Amazon drives a significant portion of the world's optical networking component needs.
So things are running a bit slow at the moment. Regulatory uncertainty plays a large part here, both in China and America. Standards bodies are putting the finishing touches on 5G wireless technologies, among other things, and there's a hidden groundswell of upcoming hardware needs that just aren't quite ready to be met yet.
All three of last month's biggest dips are tied to high-quality businesses. Among them, Applied Optoelectronics seems to offer the biggest opportunity for a strong bounce, while Lumentum and Infinera provide more stability. All of them look like solid buys at the bargain prices of early 2018.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Apple, and Infinera. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lumentum Holdings (NASDAQ: LITE) ended the month 9.5% lower, Infinera (NASDAQ: INFN) investors took a 12.6% hit, and Applied Optoelectronics (NASDAQ: AAOI) fell 13.4%. But fellow laser-builders Infinera and Applied Optoelectronics fell on the same news, since Apple doesn't seem likely to reach out for alternative laser suppliers after a move like that. Standards bodies are putting the finishing touches on 5G wireless technologies, among other things, and there's a hidden groundswell of upcoming hardware needs that just aren't quite ready to be met yet.
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Lumentum Holdings (NASDAQ: LITE) ended the month 9.5% lower, Infinera (NASDAQ: INFN) investors took a 12.6% hit, and Applied Optoelectronics (NASDAQ: AAOI) fell 13.4%. What happened Shares of many optical networking specialists plunged in December 2017, according to data from S&P Global Market Intelligence . The Motley Fool owns shares of and recommends Amazon, Apple, and Infinera.
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Lumentum Holdings (NASDAQ: LITE) ended the month 9.5% lower, Infinera (NASDAQ: INFN) investors took a 12.6% hit, and Applied Optoelectronics (NASDAQ: AAOI) fell 13.4%. The maker of fiber-optic networking components such as lasers and transceivers is a major supplier of networking tools to Amazon.com (NASDAQ: AMZN) , and analyst firm Cowen & Co. fears that Amazon's move to newer and faster transceivers will hurt the company in the short term. The Motley Fool owns shares of and recommends Amazon, Apple, and Infinera.
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Lumentum Holdings (NASDAQ: LITE) ended the month 9.5% lower, Infinera (NASDAQ: INFN) investors took a 12.6% hit, and Applied Optoelectronics (NASDAQ: AAOI) fell 13.4%. What happened Shares of many optical networking specialists plunged in December 2017, according to data from S&P Global Market Intelligence . Many others saw smaller price reductions, but these were the industry's biggest losers in December.
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8d6824ae-2a65-4451-bd67-568fd0d46572
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9730.0
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2017-12-19 00:00:00 UTC
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Applied Opto Continues to Face Challenges at Amazon, Facebook, Says BWS
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AAOI
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https://www.nasdaq.com/articles/applied-opto-continues-face-challenges-amazon-facebook-says-bws-2017-12-19
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nan
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nan
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Fiber-optic component vendor Applied Optoelectronics (AAOI) is still struggling, according to a note today from BWS Financial's Hamed Khorsdan, who has a Sell rating on the maker of data center and telecom parts.
Khorsand had written over the summer that the company's business in transceivers for 40-gigabit transmission was "eroding," leaving the company in a difficult spot. CFO Stefan Murrayrebutted what he called factual errors by Khorsand at the time. Then in early August, Applied shares plunged as the company forecast results well below expectations, which Khorsand took as vindication. Khorsand returned again with dire words in mid-October, when Applied warned it would miss that already disappointing forecast.
Applied's next quarterly report, fiscal Q4, is not expected until late February. But Khorsand is back with more warnings today, writing that as the quarter draws to a close - Q4 ends this month - "it does not look like there would be much of a turnaround in the slumping revenue Applied Optoelectronics has been reporting lately."
Re-iterating a $25 price target on Applied stock, Khorsand writes the company is dealing with challenges at both Facebook (FB) and Amazon (AMZN), though he doesn't cite any sources for the assertion:
AAOI continues to face market share erosion at Facebook and annual price negotiations could push prices lower than initially expected. Additionally, we believe AAOI faces further challenges with Amazon.com. The combination of losing share at FB and AMZN making the seasonal decision to limit its purchasing activity in the fourth quarter sets up what could end up be a disappointing fourth quarter performance by AAOI.
Applied shares today are up $1.68, or 4.5%, at $40.95.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fiber-optic component vendor Applied Optoelectronics (AAOI) is still struggling, according to a note today from BWS Financial's Hamed Khorsdan, who has a Sell rating on the maker of data center and telecom parts. Re-iterating a $25 price target on Applied stock, Khorsand writes the company is dealing with challenges at both Facebook (FB) and Amazon (AMZN), though he doesn't cite any sources for the assertion: AAOI continues to face market share erosion at Facebook and annual price negotiations could push prices lower than initially expected. Additionally, we believe AAOI faces further challenges with Amazon.com.
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Re-iterating a $25 price target on Applied stock, Khorsand writes the company is dealing with challenges at both Facebook (FB) and Amazon (AMZN), though he doesn't cite any sources for the assertion: AAOI continues to face market share erosion at Facebook and annual price negotiations could push prices lower than initially expected. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Fiber-optic component vendor Applied Optoelectronics (AAOI) is still struggling, according to a note today from BWS Financial's Hamed Khorsdan, who has a Sell rating on the maker of data center and telecom parts.
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Re-iterating a $25 price target on Applied stock, Khorsand writes the company is dealing with challenges at both Facebook (FB) and Amazon (AMZN), though he doesn't cite any sources for the assertion: AAOI continues to face market share erosion at Facebook and annual price negotiations could push prices lower than initially expected. Fiber-optic component vendor Applied Optoelectronics (AAOI) is still struggling, according to a note today from BWS Financial's Hamed Khorsdan, who has a Sell rating on the maker of data center and telecom parts. Additionally, we believe AAOI faces further challenges with Amazon.com.
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Fiber-optic component vendor Applied Optoelectronics (AAOI) is still struggling, according to a note today from BWS Financial's Hamed Khorsdan, who has a Sell rating on the maker of data center and telecom parts. Re-iterating a $25 price target on Applied stock, Khorsand writes the company is dealing with challenges at both Facebook (FB) and Amazon (AMZN), though he doesn't cite any sources for the assertion: AAOI continues to face market share erosion at Facebook and annual price negotiations could push prices lower than initially expected. Additionally, we believe AAOI faces further challenges with Amazon.com.
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673fcf70-27ac-4037-bc73-b3d37f6d1564
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9731.0
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2017-12-19 00:00:00 UTC
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Why Darden Restaurants, Zimmer Biomet Holdings, and Applied Optoelectronics Jumped Today
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AAOI
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https://www.nasdaq.com/articles/why-darden-restaurants-zimmer-biomet-holdings-and-applied-optoelectronics-jumped-today
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nan
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nan
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Tuesday was a fairly quiet day on Wall Street, with major benchmarks largely pausing after huge gains in recent sessions. The tax reform package took a key step toward becoming law, with an afternoon vote in the House of Representatives passing the compromise measure and sending it to the Senate for its approval. Even though the overall market didn't see a huge upward move following the passage of the bill, a few stocks posted substantial gains following good news. Darden Restaurants (NYSE: DRI) , Zimmer Biomet Holdings (NYSE: ZBH) , and Applied Optoelectronics (NASDAQ: AAOI) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Darden looks tastier
Shares of Darden Restaurants climbed 7% after the company announced favorable financial results in its fiscal second-quarter report. The parent company of Olive Garden said that total revenue was up almost 15% from the year-earlier period, bolstered largely by the acquisition of Cheddar's Scratch Kitchen earlier this year. Same-restaurant sales were attractive for most of the company's key franchises, including a 3% rise in comps for Olive Garden, 3.8% for LongHorn Steakhouse and Capital Grille, and 6.8% for Eddie V's. Darden also boosted its outlook for fiscal 2018, expecting same-restaurant sales growth of 2% and slightly higher adjusted earnings than it had previously predicted. After a long malaise, it looks like the restaurant industry is bouncing back, and Darden's results show how it could benefit in 2018 and beyond.
Zimmer names a new leader
Zimmer Biomet Holdings stock was up by 6% in the wake of the company's announcement that it has a new chief executive officer. The musculoskeletal healthcare specialist said that it had named Bryan Hanson to be CEO, allowing interim chief Daniel Florin to return to his role as CFO. Hanson has substantial experience in the medical device industry, and his time working for a key industry rival could give Zimmer some competitive advantages going forward. With Zimmer having the opportunity to move more aggressively into the robotic surgery space through its 2016 purchase of French company Medtech, it will be interesting to see how Hanson chooses to move the company forward.
Applied Optoelectronics rises despite negative views
Finally, shares of Applied Optoelectronics rose 7%. The move higher came despite further negative comments from analysts at BWS Financial, who gave the fiber-optic component specialist a sell rating earlier this year and repeated their $25-per-share price target on the stock today. BWS said that the company is dealing with challenges from major players in the internet space, but shareholders don't seem to think that those concerns are worth worrying about. That said, even with today's gain, the stock is down by more than half from its summer highs, so it's possible that investors simply think that any bad news is already accounted for in the price of the shares .
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Darden Restaurants (NYSE: DRI) , Zimmer Biomet Holdings (NYSE: ZBH) , and Applied Optoelectronics (NASDAQ: AAOI) were among the best performers on the day. The tax reform package took a key step toward becoming law, with an afternoon vote in the House of Representatives passing the compromise measure and sending it to the Senate for its approval. The parent company of Olive Garden said that total revenue was up almost 15% from the year-earlier period, bolstered largely by the acquisition of Cheddar's Scratch Kitchen earlier this year.
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Darden Restaurants (NYSE: DRI) , Zimmer Biomet Holdings (NYSE: ZBH) , and Applied Optoelectronics (NASDAQ: AAOI) were among the best performers on the day. Applied Optoelectronics rises despite negative views Finally, shares of Applied Optoelectronics rose 7%. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Darden Restaurants (NYSE: DRI) , Zimmer Biomet Holdings (NYSE: ZBH) , and Applied Optoelectronics (NASDAQ: AAOI) were among the best performers on the day. Zimmer names a new leader Zimmer Biomet Holdings stock was up by 6% in the wake of the company's announcement that it has a new chief executive officer. With Zimmer having the opportunity to move more aggressively into the robotic surgery space through its 2016 purchase of French company Medtech, it will be interesting to see how Hanson chooses to move the company forward.
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Darden Restaurants (NYSE: DRI) , Zimmer Biomet Holdings (NYSE: ZBH) , and Applied Optoelectronics (NASDAQ: AAOI) were among the best performers on the day. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor , has tripled the S&P 500!
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d5294589-3e16-4c70-95aa-a49321ce2d10
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9732.0
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2017-12-12 00:00:00 UTC
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Oclaro Et. Al.: China's Optical Market Recovers, But Slowly, Says Rosenblatt
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AAOI
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https://www.nasdaq.com/articles/oclaro-et-al-chinas-optical-market-recovers-slowly-says-rosenblatt-2017-12-12
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nan
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nan
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China's optical fiber market is coming back, but slowly, according to a note this morning from Rosenblatt Securities analyst Jun Zhang, who follows shares of laser vendor Oclaro (OCLR), Acacia Communications (ACIA), Applied Optoelectronics (AAOI), and other vendors.
" Demand in China is stabilizing and slightly improving," writes Zhang, "but we do not see a broad acceleration in China's recovery yet.
"Chinese vendors recently concluded 2018 component and module procure- ments. Therefore, optical module and component suppliers should have base- line procurement contracts from Chinese vendors for 2018."
The tricky part, indicates Zhang, is that Chinese buyers of components are increasingly coming up with their own internal components, which is going to dent some of the demand:
Instead of overpromising volume to suppliers, we believe Chinese vendors of- fered baseline procurement volume estimates for 2018. Additionally, we believe these current procurement forecasts do not include any upside from initial 5G deployments in 2H18. However, line and client side module procurements from Chinese vendors are all down YoY due to internal sourcing. Therefore, due to conservative forecasts and increasing competition in the module market, most optical suppliers will likely continue to speak conservatively on China demand.
Zhang goes through what to expect, and it's quite a mixed bag for various different vendors:
As we expected, ZTE is attempting to increase its internal sourcing for line side CFP2 DCO modules in 2018. Therefore, Acacia's business could be negatively impacted in 2018 by ZTE. On the other hand, we believe there's a chance Acacia can qualify at Huawei for DSP in 2018, but we see no signs yet. Intel's (INTC: Sell) CWDM4 has been qualified at Facebook (FB) and could have a sizeable market share, similar to the share size we expect InnoLight to also have at Facebook in 2018. However, Applied Optoelectronics shares are down significantly at Facebook in 2018 likely putting its CQ4 guid- ance at risk […] NeoPhotonics (NPTN: Buy) could be up YoY, Lumentum (LITE: Buy) flat YoY, Oclaro down slightly YoY, and Acacia down YoY. We also esti- mate Huawei and ZTE's 100G ports to grow to 150K and 35K from 130K and 45K, respectively, in 2018. FiberHome (600498-SH) recently saw a large share gain at China Unicom (CHU: Sell) and we expect it to double its 100G port shipments in 2018 from a small basis.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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China's optical fiber market is coming back, but slowly, according to a note this morning from Rosenblatt Securities analyst Jun Zhang, who follows shares of laser vendor Oclaro (OCLR), Acacia Communications (ACIA), Applied Optoelectronics (AAOI), and other vendors. " However, line and client side module procurements from Chinese vendors are all down YoY due to internal sourcing. FiberHome (600498-SH) recently saw a large share gain at China Unicom (CHU: Sell) and we expect it to double its 100G port shipments in 2018 from a small basis.
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China's optical fiber market is coming back, but slowly, according to a note this morning from Rosenblatt Securities analyst Jun Zhang, who follows shares of laser vendor Oclaro (OCLR), Acacia Communications (ACIA), Applied Optoelectronics (AAOI), and other vendors. " Therefore, optical module and component suppliers should have base- line procurement contracts from Chinese vendors for 2018." However, line and client side module procurements from Chinese vendors are all down YoY due to internal sourcing.
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China's optical fiber market is coming back, but slowly, according to a note this morning from Rosenblatt Securities analyst Jun Zhang, who follows shares of laser vendor Oclaro (OCLR), Acacia Communications (ACIA), Applied Optoelectronics (AAOI), and other vendors. " The tricky part, indicates Zhang, is that Chinese buyers of components are increasingly coming up with their own internal components, which is going to dent some of the demand: Instead of overpromising volume to suppliers, we believe Chinese vendors of- fered baseline procurement volume estimates for 2018. However, Applied Optoelectronics shares are down significantly at Facebook in 2018 likely putting its CQ4 guid- ance at risk […] NeoPhotonics (NPTN: Buy) could be up YoY, Lumentum (LITE: Buy) flat YoY, Oclaro down slightly YoY, and Acacia down YoY.
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China's optical fiber market is coming back, but slowly, according to a note this morning from Rosenblatt Securities analyst Jun Zhang, who follows shares of laser vendor Oclaro (OCLR), Acacia Communications (ACIA), Applied Optoelectronics (AAOI), and other vendors. " Therefore, optical module and component suppliers should have base- line procurement contracts from Chinese vendors for 2018." However, line and client side module procurements from Chinese vendors are all down YoY due to internal sourcing.
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3a0835c7-a6fb-45a9-941e-cfd318017fba
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9733.0
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2017-11-28 00:00:00 UTC
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Forget Cryptocurrencies: You're Better Off Buying These 3 Stocks
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AAOI
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https://www.nasdaq.com/articles/forget-cryptocurrencies-youre-better-buying-these-3-stocks-2017-11-28
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nan
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nan
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Cryptocurrencies are soaring sky-high right now. Led by market veterans bitcoin and Ethereum, many digital asset stores have grown their market value tenfold or more over the past year.
But many investors are nervous about these skyrocketing prices, expecting the bubble to burst at any moment with little warning. So we asked a handful of your fellow investors here at The Motley Fool what could take the pace of cryptocurrencies in a sane portfolio right now. Read on to see why they recommend calming your nerves with a healthy dose of NVIDIA (NASDAQ: NVDA) , Applied Optoelectronics (NASDAQ: AAOI) , or even Skechers Footwear (NYSE: SKX) .
Do the math
Danny Vena(NVIDIA): Cryptocurrency is all the rage, but the excitement regarding these digital currencies has reached a fever pitch, and the bubble could burst at any time. Smart investors looking to profit from the craze without bearing all the risk would be wise to check out NVIDIA.
The verification process for mining cryptocurrency requires a great deal of processing power and is mathematically complex -- and the graphics processing unit (GPU) continues to be the best tool for the job in many cases. The parallel processing capability of these chips allows them to perform a high number of mathematical calculations simultaneously at a high rate of speed, and NVIDIA GPUs have been the choice of many miners .
Investors in NVIDIA get much more than just exposure to the cryptocurrency market. Artificial intelligence (AI) has been driving the company's data center revenue, producing triple-digit year-over-year growth in each of the past six quarters. AI is still in its infancy and presents a growing opportunity. NVIDIA announced partnerships with several of China's biggest tech companies to upgrade to its latest AI-centric platform.
Aside from its foundation in AI, the company stands at the intersection of many of today's hottest growth trends, including virtual and augmented reality, cloud computing, and self-driving cars, all of which require GPUs to power their technologies .
NVIDIA's gaming segment continues to produce the lion's share of the company's revenue and is still displaying impressive growth, having doubled over the preceding five quarters.
Why invest in cryptocurrency when you can have that and so much more?
Amazon's amazing advantages -- amplified!
Anders Bylund (Applied Optoelectronics): Investors with a yen for high-risk, high-reward investments like bitcoin and Ethereum are likely to want something more than a solid, safe, and boring blue-chip stock. I could have recommended high-flying online retailer and cloud computing giant Amazon.com (NASDAQ: AMZN) here, but let's take the logical step to one of Amazon's top suppliers.
Applied Optoelectronics makes fiber-optic networking components . You'll find its products in telecom and cable connection centrals around the world, but also in corporate data centers. In particular, top customers Amazon and Microsoft (NASDAQ: MSFT) use Applied Optoelectronics' fiber-optic transceivers to keep the data flowing around their cloud computing servers. These two clients added up to 73% of the company's total sales in 2016.
There's no question that Microsoft and Amazon will continue to need lots of fiber-powered bandwidth for years to come. Their Windows Azure and Amazon Web Services platforms absolutely demand it and have become important profit centers for their parent companies. Whatever these services need, they will get.
As a result, the company is growing at breakneck speed . At the same time, you can buy Advanced Optoelectronics shares at the bargain-bin valuation of just 9.8 times trailing earnings or 9.3 times free cash flows. The rampant top-line growth hit a speed bump over the summer, when it became clear that Amazon and others are shifting gears into the next generation of high-speed transceivers -- a bit earlier than the component supplier had expected.
So there's currently a mismatch between supply and demand of 40-gigabit and 100-gigabit transceivers, and Advanced Optoelectronics is ramping up its next-generation production lines as quickly as possible. Shares plunged on the news and haven't recovered five months later. Investors are nursing a 59% haircut, compared to August's all-time high. That's still good enough for a 68% gain over the last 52 weeks.
This stock will come back swinging, possibly matching Bitcoin's skyrocketing returns while also providing products of obvious real-world value.
A boring company with real value
Tim Green(Skechers): Cryptocurrencies are exciting. Skechers, a footwear and apparel company, is not. But when you buy a share of Skechers, you own a piece of a growing, profitable business. A business with assets. A business that has intrinsic value. When you buy cryptocurrency, you get none of that.
Shares of Skechers shot up after the company reported its third-quarter results in October , and for good reason. The company blew past analyst estimates for earnings and produced strong double-digit revenue growth. The international wholesale business grew sales by 25.7% year over year, while the U.S. wholesale held its own with 1.4% growth. Comparable sales at Skechers' retail stores jumped 4.4%, a solid result in a difficult retail environment.
Earnings per share jumped 40%, driven by higher revenue and a lower tax rate. Analysts expect Skechers to produce $1.71 in per-share earnings this year, putting the price-to-earnings ratio at about 20. That may seem expensive, but it ignores Skechers rock-solid balance sheet. Back out the $719 million in net cash, and Skechers PE ratio falls to just 17.6.
Skechers stock isn't as cheap as it was earlier this year, but given the company's international growth prospects, the valuation seems reasonable to me. While its nice to think about cryptocurrencies surging in value and making you rich, buying shares of a high-quality company for a reasonable price is a much better option.
10 stocks we like better than Nvidia
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Click here to learn about these picks!
*Stock Advisor returns as of November 6, 2017
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of Amazon. Danny Vena owns shares of Amazon and Skechers. Timothy Green owns shares of Skechers. The Motley Fool owns shares of and recommends Amazon, Nvidia, and Skechers. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Read on to see why they recommend calming your nerves with a healthy dose of NVIDIA (NASDAQ: NVDA) , Applied Optoelectronics (NASDAQ: AAOI) , or even Skechers Footwear (NYSE: SKX) . Aside from its foundation in AI, the company stands at the intersection of many of today's hottest growth trends, including virtual and augmented reality, cloud computing, and self-driving cars, all of which require GPUs to power their technologies . Anders Bylund (Applied Optoelectronics): Investors with a yen for high-risk, high-reward investments like bitcoin and Ethereum are likely to want something more than a solid, safe, and boring blue-chip stock.
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Read on to see why they recommend calming your nerves with a healthy dose of NVIDIA (NASDAQ: NVDA) , Applied Optoelectronics (NASDAQ: AAOI) , or even Skechers Footwear (NYSE: SKX) . In particular, top customers Amazon and Microsoft (NASDAQ: MSFT) use Applied Optoelectronics' fiber-optic transceivers to keep the data flowing around their cloud computing servers. Comparable sales at Skechers' retail stores jumped 4.4%, a solid result in a difficult retail environment.
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Read on to see why they recommend calming your nerves with a healthy dose of NVIDIA (NASDAQ: NVDA) , Applied Optoelectronics (NASDAQ: AAOI) , or even Skechers Footwear (NYSE: SKX) . NVIDIA's gaming segment continues to produce the lion's share of the company's revenue and is still displaying impressive growth, having doubled over the preceding five quarters. Skechers stock isn't as cheap as it was earlier this year, but given the company's international growth prospects, the valuation seems reasonable to me.
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Read on to see why they recommend calming your nerves with a healthy dose of NVIDIA (NASDAQ: NVDA) , Applied Optoelectronics (NASDAQ: AAOI) , or even Skechers Footwear (NYSE: SKX) . But when you buy a share of Skechers, you own a piece of a growing, profitable business. That's right -- they think these 10 stocks are even better buys.
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29e09768-fed0-48f5-b09a-f78a392d2e3f
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9734.0
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2017-11-27 00:00:00 UTC
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Bear Of The Day: Ciena Corporation (CIEN)
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AAOI
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https://www.nasdaq.com/articles/bear-day-ciena-corporation-cien-2017-11-27
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nan
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nan
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Ciena Corp (CIEN) recently beat the Zacks Consensus Estimate on the top and bottom lines, but guidance for the next quarter was below expectations and the stock saw estimates fall. That helped push the stock to a Zacks Rank #5 (Strong Sell) but a deeper look at the report may give us some valuable insights.
Earnings Report
The company earned $0.51 when $0.49 was expected and posted revenues of $728M when $726M was expected. Those numbers are good, but the stock market cares more about what you will do as opposed to what you have done.
The company guided next quarter to revenues of $720M -$750M and that is below the $770M consensus at the time fo the report.
Stocks in this market are "priced for perfection" and when you disappoint in anyway, your stock can get hit hard. CIEN found that out as the stock immediately fell 5% in the premarket and continued lower by more than 11% in the session following the report.
Earnings Ahead
The company is set to report earnings again soon, December 7 to be exact. The Zacks Consensus Estimate is calling for $739M on top and $0.51 on the bottom line.
Other stocks in the same sector have been seen some weakness with AAOI in particular having some issues.
There have also been a lot of put buyers on CIEN of late. At least two times in the last 3 weeks this stock was highlighted as one that had notable action in the options market.
Options Market
In looking at the at the market straddle, I see a potential move of more than 9% being priced in for CIEN. Three of the last four quarters the stock has moved more than what the options market has priced in. Seeing as we are near the highs, the best bet would be to wait and see what happens in this sector over the next week or so. A straddle placed just an hour or so before the close prior to the report is one potential given what I am seeing.
Chart
Ciena Corporation Price and Consensus
Ciena Corporation Price and Consensus | Ciena Corporation Quote
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other stocks in the same sector have been seen some weakness with AAOI in particular having some issues. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. That helped push the stock to a Zacks Rank #5 (Strong Sell) but a deeper look at the report may give us some valuable insights.
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Other stocks in the same sector have been seen some weakness with AAOI in particular having some issues. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Ciena Corp (CIEN) recently beat the Zacks Consensus Estimate on the top and bottom lines, but guidance for the next quarter was below expectations and the stock saw estimates fall.
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Other stocks in the same sector have been seen some weakness with AAOI in particular having some issues. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Ciena Corp (CIEN) recently beat the Zacks Consensus Estimate on the top and bottom lines, but guidance for the next quarter was below expectations and the stock saw estimates fall.
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Other stocks in the same sector have been seen some weakness with AAOI in particular having some issues. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Ciena Corp (CIEN) recently beat the Zacks Consensus Estimate on the top and bottom lines, but guidance for the next quarter was below expectations and the stock saw estimates fall.
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e88cd461-f165-44ea-8ad9-286d194f0971
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9735.0
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2017-11-16 00:00:00 UTC
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Thursday 11/16 Insider Buying Report: MXWL, AAOI
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AAOI
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https://www.nasdaq.com/articles/thursday-1116-insider-buying-report-mxwl-aaoi-2017-11-16
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nan
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nan
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As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
On Tuesday, Maxwell Technologies ( MXWL )'s Chief Executive Officer, Franz Fink, made a $1.15M purchase of MXWL, buying 230,000 shares at a cost of $4.98 a piece. Fink was up about 4.7% on the purchase at the high point of today's trading session, with MXWL trading as high as $5.21 in trading on Thursday. Maxwell Technologies is trading up about 8.6% on the day Thursday. This buy marks the first one filed by Fink in the past twelve months.
And at Applied Optoelectronics ( AAOI ), there was insider buying on Monday, by Director Alan D. Moore who purchased 22,400 shares for a cost of $44.60 each, for a trade totaling $999,047. Applied Optoelectronics is trading off about 1.3% on the day Thursday.
VIDEO: Thursday 11/16 Insider Buying Report: MXWL, AAOI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And at Applied Optoelectronics ( AAOI ), there was insider buying on Monday, by Director Alan D. Moore who purchased 22,400 shares for a cost of $44.60 each, for a trade totaling $999,047. VIDEO: Thursday 11/16 Insider Buying Report: MXWL, AAOI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This buy marks the first one filed by Fink in the past twelve months.
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And at Applied Optoelectronics ( AAOI ), there was insider buying on Monday, by Director Alan D. Moore who purchased 22,400 shares for a cost of $44.60 each, for a trade totaling $999,047. VIDEO: Thursday 11/16 Insider Buying Report: MXWL, AAOI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And at Applied Optoelectronics ( AAOI ), there was insider buying on Monday, by Director Alan D. Moore who purchased 22,400 shares for a cost of $44.60 each, for a trade totaling $999,047. VIDEO: Thursday 11/16 Insider Buying Report: MXWL, AAOI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Fink was up about 4.7% on the purchase at the high point of today's trading session, with MXWL trading as high as $5.21 in trading on Thursday.
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And at Applied Optoelectronics ( AAOI ), there was insider buying on Monday, by Director Alan D. Moore who purchased 22,400 shares for a cost of $44.60 each, for a trade totaling $999,047. VIDEO: Thursday 11/16 Insider Buying Report: MXWL, AAOI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money.
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9b70c609-34d1-4c29-baa5-e80cbe7926c6
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9736.0
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2017-11-13 00:00:00 UTC
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Applied Optoelectronics Inc Is Only Worth It When You Use This Strategy
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-only-worth-it-when-you-use-strategy-2017-11-13
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors can choose to believe in Applied Optoelectronics Inc (NASDAQ: AAOI ). But if you're like me and have trouble letting bygones be bygones, an out-of-the-money bull call spread in lieu of AAOI stock looks like a nice compromise. Let me explain.
Source: Shutterstock
Following an October gaffe by Applied Optoelectronics management and collective gasp from AAOI bulls, last week's pre-warned Q3 earnings report was apparently pleasing to investors.
Revenue of $88.9 million came in within October's forecast of $88 million to $89 million and profits topped out at $1.08 compared to an estimated range of $1.04- to $1.09-per-share.
But while AAOI stock has surged nearly 20% in the report's aftermath, shares are still off by roughly 23% prior to October's fallout. The warning was a result of Applied Optoelectronics having a couple large and lucrative eggs in one basket, accounting for nearly 75% of AAOI's data center sales - and 'unexpectedly' seeing drastically lower demand from one of those customers: Amazon.com, Inc. (NASDAQ: AMZN ).
Now it appears investors are trying to put the incident behind the company and regroup with an eye on still strong-looking growth potential. For its part, management stated it believes the inventory issues with its large, but undisclosed customer (universally accepted as being Amazon based on filings this year), will be back on track in the first half of 2018.
3 Stocks to Buy and 2 to Sell With the Rise of "New Hollywood"
The question is, should Applied Optoelectronics be trusted and investors accept October's warning as a one-off incident? Some concerns have been raised that the company had to know or should have realized there were problems before it reduced guidance in October. If so, this goes to the heart of issues regarding the potential integrity and/or competency of management.
AAOI Weekly Stock Chart
To say AAOI stock enjoyed a nice weekly performance is an understatement. But AAOI could potentially move much higher based on a very unfriendly trend to bulls in recent months; and if investors are up to the task of letting bygones be bygones.
Bottom-line, a deep corrective move of around 65% and engulfing bullish candlestick that's reclaiming the 62% retracement level from an oversold stochastics position looks promising for continued upside.
Headwinds Are Starting to Slow Tesla Inc
Adding further support, the daily perspective, which sports a large price gap from about $50 to $58 and tied to October's warning, makes AAOI stock even more enticing as it's not too far from current prices and could cause a fast and powerful upside reaction.
AAOI Stock Bullish OTM Call Spread
For investors that are bullish given the circumstances presented, an out-of-the-money vertical, which vastly reduces and limits risk is a favored play. Reviewing Applied Optoelectronics options, the Dec $50 / $55 bull call spread is attractively priced. With shares of AAOI at $45.30 the vertical trades for $1.00.
The absolute risk with this bullish spread is contained to just over 2% stock risk and it allows for a max profit capture of 400% or $4.00 above $55. That's another 22% from current prices, which might sound like a lot. However, as the target is still within the gap area, 47% removed from this summer's high of $103.41 and a couple dollars below the 200-day simple moving average, those are some good reasons to believe without being too faithful.
Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any of the securities or their derivatives mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits .
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The post Applied Optoelectronics Inc Is Only Worth It When You Use This Strategy appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: Shutterstock Following an October gaffe by Applied Optoelectronics management and collective gasp from AAOI bulls, last week's pre-warned Q3 earnings report was apparently pleasing to investors. The warning was a result of Applied Optoelectronics having a couple large and lucrative eggs in one basket, accounting for nearly 75% of AAOI's data center sales - and 'unexpectedly' seeing drastically lower demand from one of those customers: Amazon.com, Inc. (NASDAQ: AMZN ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors can choose to believe in Applied Optoelectronics Inc (NASDAQ: AAOI ).
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But if you're like me and have trouble letting bygones be bygones, an out-of-the-money bull call spread in lieu of AAOI stock looks like a nice compromise. AAOI Weekly Stock Chart To say AAOI stock enjoyed a nice weekly performance is an understatement. AAOI Stock Bullish OTM Call Spread For investors that are bullish given the circumstances presented, an out-of-the-money vertical, which vastly reduces and limits risk is a favored play.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors can choose to believe in Applied Optoelectronics Inc (NASDAQ: AAOI ). AAOI Weekly Stock Chart To say AAOI stock enjoyed a nice weekly performance is an understatement. Headwinds Are Starting to Slow Tesla Inc Adding further support, the daily perspective, which sports a large price gap from about $50 to $58 and tied to October's warning, makes AAOI stock even more enticing as it's not too far from current prices and could cause a fast and powerful upside reaction.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors can choose to believe in Applied Optoelectronics Inc (NASDAQ: AAOI ). But if you're like me and have trouble letting bygones be bygones, an out-of-the-money bull call spread in lieu of AAOI stock looks like a nice compromise. AAOI Stock Bullish OTM Call Spread For investors that are bullish given the circumstances presented, an out-of-the-money vertical, which vastly reduces and limits risk is a favored play.
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098a090a-6adf-4ea3-82a1-cf8b29bf29ed
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9737.0
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2017-11-08 00:00:00 UTC
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New Strong Sell Stocks for November 8th
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AAOI
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-november-8th-2017-11-08
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
First Republic Bank FRC is a private banking, real estate lending and wealth management services provider. The Zacks Consensus Estimate for its current year earnings has been revised 2% downward over the last 30 days.
Applied Optoelectronics, Inc. AAOI is a designer and seller of fiber-optic networking products. The Zacks Consensus Estimate for its current year earnings has been revised 7.8% downward over the last 30 days.
Acacia Communications, Inc.ACIA is a developer and seller of high-speed coherent optical interconnect products. The Zacks Consensus Estimate for its current year earnings has been revised 3.2% downward over the last 30 days.
Realogy Holdings Corp.RLGY is a real estate services provider. The Zacks Consensus Estimate for its current year earnings has been revised 4.1% downward over the last 30 days.
Bloomin' Brands, Inc.BLMN is an owner and operator of casual, upscale casual and fine dining restaurants. The Zacks Consensus Estimate for its current year earnings has been revised 3.6% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Acacia Communications, Inc. (ACIA): Free Stock Analysis Report
FIRST REPUBLIC BANK (FRC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Realogy Holdings Corp. (RLGY): Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, Inc. AAOI is a designer and seller of fiber-optic networking products. Click to get this free report Acacia Communications, Inc. (ACIA): Free Stock Analysis Report FIRST REPUBLIC BANK (FRC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Realogy Holdings Corp. (RLGY): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for its current year earnings has been revised 2% downward over the last 30 days.
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Click to get this free report Acacia Communications, Inc. (ACIA): Free Stock Analysis Report FIRST REPUBLIC BANK (FRC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Realogy Holdings Corp. (RLGY): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc. AAOI is a designer and seller of fiber-optic networking products. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: First Republic Bank FRC is a private banking, real estate lending and wealth management services provider.
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Click to get this free report Acacia Communications, Inc. (ACIA): Free Stock Analysis Report FIRST REPUBLIC BANK (FRC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Realogy Holdings Corp. (RLGY): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, Inc. AAOI is a designer and seller of fiber-optic networking products. The Zacks Consensus Estimate for its current year earnings has been revised 2% downward over the last 30 days.
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Applied Optoelectronics, Inc. AAOI is a designer and seller of fiber-optic networking products. Click to get this free report Acacia Communications, Inc. (ACIA): Free Stock Analysis Report FIRST REPUBLIC BANK (FRC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Realogy Holdings Corp. (RLGY): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: First Republic Bank FRC is a private banking, real estate lending and wealth management services provider.
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5a260e12-736e-45f9-bbdb-62a107f1938f
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9738.0
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2017-11-08 00:00:00 UTC
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Applied Optoelectronics Pleases Investors After Setting the Stage With Lowered Guidance
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-pleases-investors-after-setting-stage-lowered-guidance-2017-11-08
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nan
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nan
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Shares of Applied Optoelectronics (NASDAQ: AAOI) started sinking after the company issued a preliminary third-quarter report on Oct. 12. Final results reported on Nov. 7 are sending the stock up today, giving the stock a roughly 80% gain year to date, but investors who bought over the summer months are feeling the pain as the stock has a ways to go to get back to levels from July and early August.
Data by YCharts.
What happened in Q3 2017
Third-quarter results were a big disappointment compared to original guidance. Revenue tallied up to $88.9 million, well short of original guidance of $107 million to $115 million. Management had set the stage for investors on Oct. 12, predicting quarterly revenue of $88 million to $89 million.
Non-GAAP earnings per share, which exclude stock-based compensation and other one-time items, were $1.08, compared with original guidance of $1.30 to $1.43 a share. On Oct. 12, management had forecast non-GAAP EPS of $1.04 to $1.09, so the company came in near the high end.
CEO Thompson Lin had this to say about the quarter:
That big data center customer, likely Amazon (NASDAQ: AMZN) based on the company's 2016 annual report, has been largely responsible for AAOI's big run-up and is now the main reason for the big declines. In fact, three-fourths of its data center business came from just two customers in the previous quarter, adding some color to the current situation as management explains what went wrong. It's a tough gig relying on a small handful of customers for revenue, and AAOI's recent reversal is proof of such.
However, management said during the conference call with analysts that it continues to talk with its large customer and thinks related inventory issues will be back on track in the first half of the year.
A pipeline for future growth
All of the negativity aside, this company's growth is nonetheless impressive in the last year. The $88.9 million in revenue was up 27% from the year-ago quarter. Revenue through the first nine months of the year came in at $302 million, a 72% increase over the same period in 2016.
What tailwind is pushing sales higher? AOI makes laser chips and other equipment for high-speed fiber-optic networks. Primary end markets are the aforementioned data center business, broadband cable TV, fiber to the home, and telecom.
All of those industries are experiencing increased demand for bandwidth, especially the internet data center with cloud-based computing and video streaming on the rise. That increased consumer demand in turn is increasing the need for higher-speed server connections to data centers. That's where AOI comes in with its next-gen products that enable progressively faster speeds.
If a progressively more connected world continues to be the trend, that should provide plenty more growth for AOI in the future. The trend as of late has been a slowing of revenue, but the company could see a resurgence in sales as new clients are added in the years ahead.
Food for thought
The good news is that AOI's retreating stock price has made the company look like a bargain. The trailing-12-month price-to-earnings ratio is at 10.0, and the one-year forward ratio is only 9.1. Those numbers illustrate how sour the investor mood has gotten.
More interesting to me is the company's free cash flow situation, which measures money left over after basic operations are paid for. The company's operations are now solidly in the black, and price-to-free-cash-flow is also beginning to indicate the stock is approaching bargain territory.
Data by YCharts.
Of course, any of the above numbers could change if AOI can't get sales growth reignited, and share prices could fall further if management disappoints again on guidance fourth quarter guidance of $81 to $90 million. If you think demand for high-speed fiber-optic based connections will continue to grow, though, it might be time to start paying attention to AOI shares.
10 stocks we like better than Applied Optoelectronics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of October 9, 2017
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Nicholas Rossolillo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Applied Optoelectronics (NASDAQ: AAOI) started sinking after the company issued a preliminary third-quarter report on Oct. 12. CEO Thompson Lin had this to say about the quarter: That big data center customer, likely Amazon (NASDAQ: AMZN) based on the company's 2016 annual report, has been largely responsible for AAOI's big run-up and is now the main reason for the big declines. It's a tough gig relying on a small handful of customers for revenue, and AAOI's recent reversal is proof of such.
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Shares of Applied Optoelectronics (NASDAQ: AAOI) started sinking after the company issued a preliminary third-quarter report on Oct. 12. CEO Thompson Lin had this to say about the quarter: That big data center customer, likely Amazon (NASDAQ: AMZN) based on the company's 2016 annual report, has been largely responsible for AAOI's big run-up and is now the main reason for the big declines. It's a tough gig relying on a small handful of customers for revenue, and AAOI's recent reversal is proof of such.
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CEO Thompson Lin had this to say about the quarter: That big data center customer, likely Amazon (NASDAQ: AMZN) based on the company's 2016 annual report, has been largely responsible for AAOI's big run-up and is now the main reason for the big declines. Shares of Applied Optoelectronics (NASDAQ: AAOI) started sinking after the company issued a preliminary third-quarter report on Oct. 12. It's a tough gig relying on a small handful of customers for revenue, and AAOI's recent reversal is proof of such.
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Shares of Applied Optoelectronics (NASDAQ: AAOI) started sinking after the company issued a preliminary third-quarter report on Oct. 12. CEO Thompson Lin had this to say about the quarter: That big data center customer, likely Amazon (NASDAQ: AMZN) based on the company's 2016 annual report, has been largely responsible for AAOI's big run-up and is now the main reason for the big declines. It's a tough gig relying on a small handful of customers for revenue, and AAOI's recent reversal is proof of such.
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93f9ef8e-a5e6-4e08-9dbf-d5dba5381649
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9739.0
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2017-11-08 00:00:00 UTC
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Why Applied Optoelectronics, MBIA, and Forterra Jumped Today
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-mbia-and-forterra-jumped-today-2017-11-08
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nan
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nan
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Wednesday was another calm day for the stock market, although major benchmarks generally posted modest gains from where they began the day. Investors reflected on the rise in the financial markets since the presidential election one year ago, and despite numerous concerns and uncertainties on the geopolitical and macroeconomic fronts both in the U.S. and across the globe, no major disruptions have threatened the nearly 9-year-old bull market. Positive results from many individual companies have helped bolster sentiment, and Applied Optoelectronics (NASDAQ: AAOI) , MBIA (NYSE: MBI) , and Forterra (NASDAQ: FRTA) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Applied Optoelectronics lights up its quarter
Shares of Applied Optoelectronics soared 15% after the Texas-based fiber-optic access network products manufacturer reported its third-quarter results late Tuesday. Applied Opto said that though lower demand from one of its major customers hurt its performance, the company nevertheless saw record revenue from its cable television business, and solid gains for the data-center division also helped lift the overall company's growth. Revenue climbed 27% and adjusted net income more than tripled from year-ago levels, and Applied Opto gave favorable guidance for the fourth quarter as well. Some fear that choppy sales could continue to plague the company , but for now, Applied Optoelectronics is producing the results that most investors want to see.
MBIA makes a big buy(back)
MBIA stock skyrocketed nearly 28% in the wake of the company's third-quarter financial report. The insurance specialist suffered a substantial loss due largely to its exposure to Puerto Rican municipal debt issues, especially in light of damage caused by Hurricane Maria. However, MBIA said that it had dramatically accelerated its repurchase of its own shares, spending $250 million since the end of the third quarter to buy back more than 31 million shares and authorizing a second $250 million for future repurchases. With a market capitalization of just $1.15 billion, these buybacks represent huge portions of MBIA's outstanding stock, and the insurer's remaining shareholders got the positive signal loud and clear about management's view on MBIA's prospects.
Forterra cleans up
Finally, shares of Forterra soared by more than 50% . The maker of pipe products for water and drainage infrastructure systems posted somewhat lackluster results in its third-quarter financial report, including a less-than-1% rise in revenue and a substantial net loss for the period. However, when you take out the negative impacts from Hurricanes Harvey and Irma as well as strategic moves that Forterra made during the quarter, the company's results came in better than it had previously expected. Forterra also anticipates better conditions for its target markets, and that could finally point to a more sustained recovery for the company in the months to come.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Positive results from many individual companies have helped bolster sentiment, and Applied Optoelectronics (NASDAQ: AAOI) , MBIA (NYSE: MBI) , and Forterra (NASDAQ: FRTA) were among the best performers on the day. Revenue climbed 27% and adjusted net income more than tripled from year-ago levels, and Applied Opto gave favorable guidance for the fourth quarter as well. The insurance specialist suffered a substantial loss due largely to its exposure to Puerto Rican municipal debt issues, especially in light of damage caused by Hurricane Maria.
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Positive results from many individual companies have helped bolster sentiment, and Applied Optoelectronics (NASDAQ: AAOI) , MBIA (NYSE: MBI) , and Forterra (NASDAQ: FRTA) were among the best performers on the day. Applied Optoelectronics lights up its quarter Shares of Applied Optoelectronics soared 15% after the Texas-based fiber-optic access network products manufacturer reported its third-quarter results late Tuesday. The maker of pipe products for water and drainage infrastructure systems posted somewhat lackluster results in its third-quarter financial report, including a less-than-1% rise in revenue and a substantial net loss for the period.
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Positive results from many individual companies have helped bolster sentiment, and Applied Optoelectronics (NASDAQ: AAOI) , MBIA (NYSE: MBI) , and Forterra (NASDAQ: FRTA) were among the best performers on the day. Applied Optoelectronics lights up its quarter Shares of Applied Optoelectronics soared 15% after the Texas-based fiber-optic access network products manufacturer reported its third-quarter results late Tuesday. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Positive results from many individual companies have helped bolster sentiment, and Applied Optoelectronics (NASDAQ: AAOI) , MBIA (NYSE: MBI) , and Forterra (NASDAQ: FRTA) were among the best performers on the day. MBIA makes a big buy(back) MBIA stock skyrocketed nearly 28% in the wake of the company's third-quarter financial report. Forterra cleans up Finally, shares of Forterra soared by more than 50% .
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b26de1f6-def3-4fa5-8d62-25dc90c7e56e
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9740.0
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2017-11-08 00:00:00 UTC
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Here's Why Applied Optoelectronics Inc. Shares Soared Today
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AAOI
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https://www.nasdaq.com/articles/heres-why-applied-optoelectronics-inc-shares-soared-today-2017-11-08
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nan
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nan
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What happened
Shares of Applied Optoelectronics (NASDAQ: AAOI) are on fire in Wednesday's trading session, rising 17.7% as of 2:45 p.m. EST. Tuesday night's third-quarter report beat Wall Street's estimates across the board, making it easy to embrace the stock on Wednesday.
So what
The maker of optical products, from low-level components to turnkey networking systems, saw top-line revenues rise 27% year over year, landing at $88.9 million. The growth spurt was driven by strong orders from data center and cable TV customers.
On the bottom line, adjusted earnings surged 184% higher, stopping at $1.08 per diluted share. The revenue gains were amplified by the mathematical fact that the year-ago period was a low point in AOI's recent history where fixed costs nearly zeroed out the bottom line entirely.
Analysts would have settled for earnings of $1.02 per share on sales near $88.5 million. Not a blowout, but still a significant surprise.
Now what
Looking ahead, AOI's management expects fourth-quarter sales to hold almost completely steady year over year at roughly $85.5 million. Earnings should rise just 5% higher to $0.88 per share.
Here, your average analyst had been expecting earnings of $0.96 per share on sales of approximately $83.6 million. That type of mixed message doesn't always sit well with investors, often triggering a price cut even if the reported results came in strong.
Of course, investors approached AOI's report with caution. At Tuesday's market close, share prices had fallen a hair-raising 63% from early August's 52-week highs due to long-term worries about the company losing major contracts to rivals . This report didn't exactly prove those fears wrong, but management did provide a few soothing quotes about the competitive landscape.
"We remain a major supplier to all of our major customers for their long-reach transceiver needs and intra-data center applications," said CFO and chief strategy officer Stefan Murry. "We remain engaged with all those customers. We have orders from all the major customers that we have."
In a broader sense, the fiber-optic networking industry is knee deep in a shift toward next-generation components with higher data transfer rates, making every supplier's results lumpy and unpredictable until the new standards have been set. I expect Applied Optoelectronics to rise above its near-term challenges as the market steps up to this new product generation in support of 5G wireless networks .
10 stocks we like better than Applied Optoelectronics
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of November 6, 2017
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are on fire in Wednesday's trading session, rising 17.7% as of 2:45 p.m. EST. The revenue gains were amplified by the mathematical fact that the year-ago period was a low point in AOI's recent history where fixed costs nearly zeroed out the bottom line entirely. At Tuesday's market close, share prices had fallen a hair-raising 63% from early August's 52-week highs due to long-term worries about the company losing major contracts to rivals .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are on fire in Wednesday's trading session, rising 17.7% as of 2:45 p.m. EST. In a broader sense, the fiber-optic networking industry is knee deep in a shift toward next-generation components with higher data transfer rates, making every supplier's results lumpy and unpredictable until the new standards have been set.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are on fire in Wednesday's trading session, rising 17.7% as of 2:45 p.m. EST. "We remain a major supplier to all of our major customers for their long-reach transceiver needs and intra-data center applications," said CFO and chief strategy officer Stefan Murry. 10 stocks we like better than Applied Optoelectronics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) are on fire in Wednesday's trading session, rising 17.7% as of 2:45 p.m. EST. On the bottom line, adjusted earnings surged 184% higher, stopping at $1.08 per diluted share. We have orders from all the major customers that we have."
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e174f024-c736-4f72-b2f1-c8543a4e52ef
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9741.0
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2017-11-07 00:00:00 UTC
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Options Traders Expect Huge Moves in Applied Optoelectronics (AAOI) Stock
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AAOI
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https://www.nasdaq.com/articles/options-traders-expect-huge-moves-in-applied-optoelectronics-aaoi-stock-2017-11-07
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nan
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nan
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 10, 2017 $40 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Applied Optoelectronics shares, but what is the fundamental picture for the company? Currently, Applied Optoelectronics is a Zacks Rank #5 (Strong Sell) in the Electronics - Semiconductors industry that ranks in the Top 44% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while seven analysts have revised their estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.33 per share to $1.04 in that period.
Given the way analysts feel about Applied Optoelectronics right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Applied Optoelectronics, Inc.AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while seven analysts have revised their estimate downward.
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d41aae7e-4694-474c-b783-ec00491d7ea4
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9742.0
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2017-11-07 00:00:00 UTC
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Applied Optoelectronics (AAOI) Stock Soars on Q3 Earnings and Revenue Beats
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-stock-soars-q3-earnings-and-revenue-beats-2017-11-07
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nan
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nan
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Applied Optoelectronics, Inc. (AAOI) just released its third-quarter financial results, posting non-GAAP earnings of $1.08 per share and revenues of $88.9 million.
Currently, AAOI is a Zacks Rank #4 (Sell), but this ranking could change based on today's results. The stock is up 20.56% to $45.68 per share in trading shortly after its earnings report was released.
Applied Optoelectronics:
Beat earnings estimates . The company posted earnings of $1.08 per share, beating the Zacks Consensus Estimate of $1.04.
Beat revenue estimates . The company saw revenue figures of $88.88 million, beating our consensus estimate of $88.53 million.
Revenue was up 27% from the $70.1 million reported in the year-ago period. GAAP earnings came in at 95 cents per share, which was down about 2% year-over-year. The aforementioned non-GAAP earnings results marked a 184% improvement from the prior-year quarter.
"While our third quarter results were negatively impacted by lower demand from a large customer, we continued to experience solid demand from our other large datacenter customers, especially for our 100G CWDM transceivers, and revenue for our CATV products reached a new record," said CEO Dr. Thompson Lin.
For the fourth quarter, management current expects revenue in the range of $81 million to $90 million and non-GAAP earnings per share in the range of $0.82 to $0.96. Our current consensus estimates are calling for earnings of $0.94 per share and revenue of $92.47 million.
Here's a graph that looks at AAOI's latest earnings surprise history:
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise
Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company's products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure.
Check back later for our full analysis on AAOI's earnings report!
Want morestock market analysisfrom this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, Inc. (AAOI) just released its third-quarter financial results, posting non-GAAP earnings of $1.08 per share and revenues of $88.9 million. Currently, AAOI is a Zacks Rank #4 (Sell), but this ranking could change based on today's results. Here's a graph that looks at AAOI's latest earnings surprise history: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
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Applied Optoelectronics, Inc. (AAOI) just released its third-quarter financial results, posting non-GAAP earnings of $1.08 per share and revenues of $88.9 million. Here's a graph that looks at AAOI's latest earnings surprise history: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Applied Optoelectronics, Inc. (AAOI) just released its third-quarter financial results, posting non-GAAP earnings of $1.08 per share and revenues of $88.9 million. Here's a graph that looks at AAOI's latest earnings surprise history: Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Currently, AAOI is a Zacks Rank #4 (Sell), but this ranking could change based on today's results.
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Applied Optoelectronics, Inc. (AAOI) just released its third-quarter financial results, posting non-GAAP earnings of $1.08 per share and revenues of $88.9 million. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Currently, AAOI is a Zacks Rank #4 (Sell), but this ranking could change based on today's results.
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10335c59-0762-4e74-9e15-10fe6db6ca35
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9743.0
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2017-11-07 00:00:00 UTC
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Is This Optical Firm's Stock Bottoming Out? Outlook Surprises
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AAOI
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https://www.nasdaq.com/articles/optical-firms-stock-bottoming-out-outlook-surprises-2017-11-07
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nan
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nan
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Applied Optoelectronics ( AAOI ) shares popped late Tuesday after the company forecast December-quarter profit and revenue below views, but the guidance miss wasn't as bad as in the last quarter.
[ibd-display-video id=2533564 width=50 float=left autostart=true]Shares in the maker of optical communications devices initially jumped over 20%, then were up 12.4% to 42.60 in after-hours trading on the stock market today .
Applied Optoelectronics said Tuesday that adjusted third-quarter earnings were $1.08 a share, up 184% from a year ago, with revenue rising 27% to $88.9 million, edging consensus estimates. A year earlier, Applied Optoelectronics earned 38 cents a share on sales of $70 million. Analysts expected Applied Optoelectronics to report earnings of $1.04 a share on sales of $88.5 million for the period ended Sept. 30.
In the current quarter, Applied Optoelectronics said it expects profit growth of 6% to 89 cents per share and revenue of $85.5 million, about flat from a year earlier vs. consensus estimates of 94 cents and $92 million in revenue.
Applied Optoelectronics in October pre-announced disappointing third-quarter results that analysts said were related to slowing orders from Amazon.com ( AMZN ).
"We are working diligently to diversify our customer base and are encouraged with the customer response so far, which led to nine design wins in the quarter, including three for our 100G products," Chief Executive Thompson Lin said in a news release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics ( AAOI ) shares popped late Tuesday after the company forecast December-quarter profit and revenue below views, but the guidance miss wasn't as bad as in the last quarter. Applied Optoelectronics said Tuesday that adjusted third-quarter earnings were $1.08 a share, up 184% from a year ago, with revenue rising 27% to $88.9 million, edging consensus estimates. Square, Monster Beverage, Roku, Alarm.com Lead Investing Action Plan Sogou IPO Set To Raise $540 Million As Search Market Heats Up Tesla, Volkswagen, Google Just Made These Moves In The Future Of Autos This IBD 50 Software Maker Hits Buy Range, But Then Retreats The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics ( AAOI ) shares popped late Tuesday after the company forecast December-quarter profit and revenue below views, but the guidance miss wasn't as bad as in the last quarter. Applied Optoelectronics said Tuesday that adjusted third-quarter earnings were $1.08 a share, up 184% from a year ago, with revenue rising 27% to $88.9 million, edging consensus estimates. A year earlier, Applied Optoelectronics earned 38 cents a share on sales of $70 million.
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Applied Optoelectronics ( AAOI ) shares popped late Tuesday after the company forecast December-quarter profit and revenue below views, but the guidance miss wasn't as bad as in the last quarter. Applied Optoelectronics said Tuesday that adjusted third-quarter earnings were $1.08 a share, up 184% from a year ago, with revenue rising 27% to $88.9 million, edging consensus estimates. In the current quarter, Applied Optoelectronics said it expects profit growth of 6% to 89 cents per share and revenue of $85.5 million, about flat from a year earlier vs. consensus estimates of 94 cents and $92 million in revenue.
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Applied Optoelectronics ( AAOI ) shares popped late Tuesday after the company forecast December-quarter profit and revenue below views, but the guidance miss wasn't as bad as in the last quarter. Applied Optoelectronics said Tuesday that adjusted third-quarter earnings were $1.08 a share, up 184% from a year ago, with revenue rising 27% to $88.9 million, edging consensus estimates. A year earlier, Applied Optoelectronics earned 38 cents a share on sales of $70 million.
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0a9aea7e-1a04-4477-9b33-957e87f56850
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9744.0
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2017-11-06 00:00:00 UTC
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Noteworthy Monday Option Activity: AAOI, BUFF, SLB
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AAOI
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-aaoi-buff-slb-2017-11-06
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nan
|
nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 10,444 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 43.5% of AAOI's average daily trading volume over the past month of 2.4 million shares. Particularly high volume was seen for the $37.50 strike put option expiring November 17, 2017 , with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $37.50 strike highlighted in orange:
Blue Buffalo Pet Products Inc (Symbol: BUFF) saw options trading volume of 6,632 contracts, representing approximately 663,200 underlying shares or approximately 42.9% of BUFF's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $25 strike put option expiring November 17, 2017 , with 4,111 contracts trading so far today, representing approximately 411,100 underlying shares of BUFF. Below is a chart showing BUFF's trailing twelve month trading history, with the $25 strike highlighted in orange:
And Schlumberger Ltd (Symbol: SLB) saw options trading volume of 37,269 contracts, representing approximately 3.7 million underlying shares or approximately 42% of SLB's average daily trading volume over the past month, of 8.9 million shares. Especially high volume was seen for the $70 strike call option expiring January 19, 2018 , with 11,299 contracts trading so far today, representing approximately 1.1 million underlying shares of SLB. Below is a chart showing SLB's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for AAOI options , BUFF options , or SLB options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $37.50 strike put option expiring November 17, 2017 , with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of AAOI. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 10,444 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 43.5% of AAOI's average daily trading volume over the past month of 2.4 million shares.
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Particularly high volume was seen for the $37.50 strike put option expiring November 17, 2017 , with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Blue Buffalo Pet Products Inc (Symbol: BUFF) saw options trading volume of 6,632 contracts, representing approximately 663,200 underlying shares or approximately 42.9% of BUFF's average daily trading volume over the past month, of 1.5 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 10,444 contracts have traded so far, representing approximately 1.0 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 10,444 contracts have traded so far, representing approximately 1.0 million underlying shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Blue Buffalo Pet Products Inc (Symbol: BUFF) saw options trading volume of 6,632 contracts, representing approximately 663,200 underlying shares or approximately 42.9% of BUFF's average daily trading volume over the past month, of 1.5 million shares. That amounts to about 43.5% of AAOI's average daily trading volume over the past month of 2.4 million shares.
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Particularly high volume was seen for the $37.50 strike put option expiring November 17, 2017 , with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Blue Buffalo Pet Products Inc (Symbol: BUFF) saw options trading volume of 6,632 contracts, representing approximately 663,200 underlying shares or approximately 42.9% of BUFF's average daily trading volume over the past month, of 1.5 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 10,444 contracts have traded so far, representing approximately 1.0 million underlying shares.
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4b543d64-adcf-4c10-b612-27e29ce15d5d
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9745.0
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2017-11-02 00:00:00 UTC
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Arista: Time to Be Worried? Asks Needham
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AAOI
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https://www.nasdaq.com/articles/arista-time-be-worried-asks-needham-2017-11-02
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nan
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nan
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Networking equipment vendor Arista Networks (ANET), which reports this afternoon, after the closing bell, could be at risk from slumping spending at cloud computing operators, according to a note this morning from Needham & Co.'s Alex Henderson, who follows the shares of Arista along with Juniper Networks and various optical component suppliers including Oclaro (OCLR), which reported disappointing results last night, specifically citing weakness in its cloud, or "hyper scale," market.
"We are very worried about Arista Networks after the close," writes Henderson.
They've never missed a quarter, he notes, but the stock is way up since Q2:
Arista is expected to post another quarter much like last quarter with 45-50% Revenue growth driven by the upgrade to 100G in Web 2.0. The stock has run on the 50% plus report it posted in CY2Q. If they come in just in line or god forbid miss slightly or guide weak, the stock is highly vulnerable. Arista has never missed a quarter since it came public.
Henderson's seeing signs of a broad slowdown from the fiber optic vendors, including Oclaro but also Juniper and Applied Optoelectronics (AAOI), which reported disappointing results a few weeks back :
With AAOI having pre-released and Juniper cited weakness in Web 2.0, we are worried the Data Comm 100G segment may be softer than expected broadly. While this may be a temporary slowdown in 100G as Web 2.0 companies have solidly beat numbers and FaceBook announced a a 100% increase in Capex for CY18 last night, it still raises concerns.
That makes him concerned for Ciena (CIEN) as well:
Another derivative from Oclaro was the ACO product, which was the primary driver of growth over the last several years is expected to flatten. Oclaro cited weak demand out of India as part of the cause of that. We think this implies weakness at Ciena and is a cause for concern on CIEN.
Arista stock this morning is up 64 cents at $197.90 in early trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Henderson's seeing signs of a broad slowdown from the fiber optic vendors, including Oclaro but also Juniper and Applied Optoelectronics (AAOI), which reported disappointing results a few weeks back : With AAOI having pre-released and Juniper cited weakness in Web 2.0, we are worried the Data Comm 100G segment may be softer than expected broadly. While this may be a temporary slowdown in 100G as Web 2.0 companies have solidly beat numbers and FaceBook announced a a 100% increase in Capex for CY18 last night, it still raises concerns. That makes him concerned for Ciena (CIEN) as well: Another derivative from Oclaro was the ACO product, which was the primary driver of growth over the last several years is expected to flatten.
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Henderson's seeing signs of a broad slowdown from the fiber optic vendors, including Oclaro but also Juniper and Applied Optoelectronics (AAOI), which reported disappointing results a few weeks back : With AAOI having pre-released and Juniper cited weakness in Web 2.0, we are worried the Data Comm 100G segment may be softer than expected broadly. Networking equipment vendor Arista Networks (ANET), which reports this afternoon, after the closing bell, could be at risk from slumping spending at cloud computing operators, according to a note this morning from Needham & Co.'s Alex Henderson, who follows the shares of Arista along with Juniper Networks and various optical component suppliers including Oclaro (OCLR), which reported disappointing results last night, specifically citing weakness in its cloud, or "hyper scale," market. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Henderson's seeing signs of a broad slowdown from the fiber optic vendors, including Oclaro but also Juniper and Applied Optoelectronics (AAOI), which reported disappointing results a few weeks back : With AAOI having pre-released and Juniper cited weakness in Web 2.0, we are worried the Data Comm 100G segment may be softer than expected broadly. Networking equipment vendor Arista Networks (ANET), which reports this afternoon, after the closing bell, could be at risk from slumping spending at cloud computing operators, according to a note this morning from Needham & Co.'s Alex Henderson, who follows the shares of Arista along with Juniper Networks and various optical component suppliers including Oclaro (OCLR), which reported disappointing results last night, specifically citing weakness in its cloud, or "hyper scale," market. They've never missed a quarter, he notes, but the stock is way up since Q2: Arista is expected to post another quarter much like last quarter with 45-50% Revenue growth driven by the upgrade to 100G in Web 2.0.
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Henderson's seeing signs of a broad slowdown from the fiber optic vendors, including Oclaro but also Juniper and Applied Optoelectronics (AAOI), which reported disappointing results a few weeks back : With AAOI having pre-released and Juniper cited weakness in Web 2.0, we are worried the Data Comm 100G segment may be softer than expected broadly. Networking equipment vendor Arista Networks (ANET), which reports this afternoon, after the closing bell, could be at risk from slumping spending at cloud computing operators, according to a note this morning from Needham & Co.'s Alex Henderson, who follows the shares of Arista along with Juniper Networks and various optical component suppliers including Oclaro (OCLR), which reported disappointing results last night, specifically citing weakness in its cloud, or "hyper scale," market. "We are very worried about Arista Networks after the close," writes Henderson.
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17124044-ce81-435b-8f9b-a2f070ff2806
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9746.0
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2017-10-27 00:00:00 UTC
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Micron Technology, Inc. (MU) Stock Is Ripe for Profit-Taking, Here’s Why
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AAOI
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https://www.nasdaq.com/articles/micron-technology-inc.-mu-stock-is-ripe-for-profit-taking-heres-why-2017-10-27
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Micron Technology, Inc. (NASDAQ: MU ) has had an amazing 2017. MU stock is up 134% over the past 12 months, and 87% year-to-date. To be fair to Micron, they've earned this sort of run. The company's earnings have been nothing short of breathtaking so far in 2017.
Source: Shutterstock
Throughout 2016, Micron barely made any money. In fact, they reported negative EPS three out of four quarters last year. However, earnings have delivered in 2017. The past three quarters have realized huge gains, rising from 90 cents to $1.62, and now $2.02 in the most recent earnings release. At that run rate, MU stock looks really cheap. If they could earn $2/share every quarter, they'd be making $8 a year, representing a 5 PE ratio on the current stock price.
At Micron, Things Are Good
All things are pointing upward for Micron at the moment. This past quarter soundly beat analyst estimates. The consensus had pegged the company at making $1.84/share. For the upcoming quarter, Micron projects another sequential earnings jump, with EPS rising to a range of $2.09 to $2.23. That's solid growth from last quarter's $2.02. And given Micron's history of beating guidance, they should come in near the high end of the estimate.
Overall, analysts project Micron growing earnings to $6.13/share next year, which would put MU stock at under a 7x forward PE ratio. Raise your MU stock price target to $60, and you're still at just 10x earnings. And some superstar investors are bored with Micron's upside story.
The Race is On: Nvidia Corporation Stock Will Hit $350 Before AMD Hits $25
Famous hedge fund manager David Einhorn is a big holder of MU stock. In his most recent quarterly letter, he said:
"[I]nvestors have reacted to MU's improving earnings with a shrug. The company is now earning more than twice as much as it did at the peak of the last cycle […] While DRAM will always be cyclical, we believe investors are underappreciating the dynamics of the current cycle and the long-term structural improvements in the industry."
PC demand historically has been the big driver for DRAM demand. Einhorn concedes that demand in PCs is "lousy". However, he offsets this by noting that mobile phones and data centers now account for much more DRAM demand, and that these segments are strong. Furthermore, he suggests that Micron has advanced in front of peers on a technology and cost curve front.
But MU Stock Is Not That Good
Einhorn is a great investor. It's wise to respect his opinion. In this case though, it's worth remembering that he's called Micron wrongly before. From 2013 to 2015, Micron stock shot up from $5 to $35. It subsequently collapsed back to $10, and Einhorn bailed on the way down before later reestablishing his position.
What went wrong that time? Micron initially did a poor job of integrating an acquisition, leaving them in a difficult position competitively against their peers. Throw in the move from Samsung Electronics KRW5000 (OTCMKTS: SSNLF ) to boost capacity more than expected, combine it with weaker than expected PC demand and pricing pressures sent Micron's earnings into a tailspin.
There's no reason that past history will play out exactly again. But it goes to show just how cyclical this industry is. Investors thought Micron stock was worth $5 in 2013, $35 in 2015, and $10 again in 2016. Trends in demand for things such as data centers are virtually impossible to predict out past a few quarters. Look at the 60% decline in leading data center equipment company Applied Optoelectronics Inc (NASDAQ: AAOI ) in four months if you want to see how this sort of cyclical stocks can lose their footing. Four months ago, it was worth $100, and now, even at $40, it still isn't cheap enough .
How Is Micron's 2018 Looking?
For the next few quarters, it appears that the demand for memory, particularly NAND, will outstrip supply. Analysts probably aren't overly optimistic in their 2018 numbers. Micron could really put up $6.13/share in earnings next year, which is pretty amazing, considering it exceeds Micron's stock price from as recently as 2013.
But after that, look for the party to end. It's worth remembering that Micron only makes up about 20% of the market and has only a minimal moat. Samsung, which controls close to 40% of the market, can still drive down prices at its discretion depending on what it does with supply. And there are plenty of other suppliers that can react by raising supply to benefit from the current pricing boom.
In Micron's defense, they have created a partnership with tech giant Intel Corporation (NASDAQ: INTC ) that has created next-gen 3D NAND and 3D XPoint technologies. This will give Micron some insulation from competition, but does little to defend against the fierce price wars that tend to hit the DRAM side of the business.
Making Sense Of The Recent Dilution
Micron recently announced that it will be selling new stock in order to raise funds. It will use the cash received to pay off debt. This move made shareholders furious. MU stock dropped 5% on the day the news was announced. Critics said this was a ridiculous idea and point to the estimated 20 cents a share dilution that will hit Micron's earnings as a result.
And yes, it's true. If you think Micron's earnings are going to keep growing steadily, selling stock would be almost indefensible. Why pay down debt with new equity when you can pay it off with earnings? However, I'd suggest management has a better grip on its business' dynamics than some of its shareholders. Management remembers the real existential threats that took their stock down to $5 in 2013 and back to $10 in 2016.
When you're up against a behemoth like Samsung, it's best to clean up your balance sheet when you get the chance. Micron stock is up more than 100% over the past year. If you're going to issue new stock and use it to fortify the company's future, now is the time to act.
Verdict
Micron is going to have a solid 2018, by all accounts. Demand still outstrips supply in the memory space. Earnings are heading higher, and everything appears to be trending nicely.
However, Wall Street is a forward-looking animal. It doesn't just care that earnings are up this quarter, it wants to see that things will keep trending higher. Once growth slows down and the top of the cycle looks near, shares will start to slide again. It's hard to predict which quarter will flip the switch. Even Einhorn got this second-level math on Micron wrong last time around. But management is giving us a big signal by issuing new stock now. MU stock is fully valued, and it's not a bad time to take some chips off the table.
At the time of this writing, the author owned INTC stock. He had no positions in any of the other aforementioned securities. You can reach him on Twitter at @irbezek.
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The post Micron Technology, Inc. (MU) Stock Is Ripe for Profit-Taking, Here's Why appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Look at the 60% decline in leading data center equipment company Applied Optoelectronics Inc (NASDAQ: AAOI ) in four months if you want to see how this sort of cyclical stocks can lose their footing. Overall, analysts project Micron growing earnings to $6.13/share next year, which would put MU stock at under a 7x forward PE ratio. This will give Micron some insulation from competition, but does little to defend against the fierce price wars that tend to hit the DRAM side of the business.
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Look at the 60% decline in leading data center equipment company Applied Optoelectronics Inc (NASDAQ: AAOI ) in four months if you want to see how this sort of cyclical stocks can lose their footing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Micron Technology, Inc. (NASDAQ: MU ) has had an amazing 2017. Overall, analysts project Micron growing earnings to $6.13/share next year, which would put MU stock at under a 7x forward PE ratio.
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Look at the 60% decline in leading data center equipment company Applied Optoelectronics Inc (NASDAQ: AAOI ) in four months if you want to see how this sort of cyclical stocks can lose their footing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Micron Technology, Inc. (NASDAQ: MU ) has had an amazing 2017. Micron could really put up $6.13/share in earnings next year, which is pretty amazing, considering it exceeds Micron's stock price from as recently as 2013.
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Look at the 60% decline in leading data center equipment company Applied Optoelectronics Inc (NASDAQ: AAOI ) in four months if you want to see how this sort of cyclical stocks can lose their footing. But MU Stock Is Not That Good Einhorn is a great investor. Trends in demand for things such as data centers are virtually impossible to predict out past a few quarters.
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c68e0266-4937-40e3-817e-7de5451c69eb
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9747.0
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2017-10-26 00:00:00 UTC
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Commit To Purchase Applied Optoelectronics At $22.50, Earn 15.7% Annualized Using Options
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AAOI
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https://www.nasdaq.com/articles/commit-purchase-applied-optoelectronics-2250-earn-157-annualized-using-options-2017-10-26
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nan
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nan
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Investors considering a purchase of Applied Optoelectronics Inc (Symbol: AAOI) stock, but tentative about paying the going market price of $39.98/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the June 2018 put at the $22.50 strike, which has a bid at the time of this writing of $2.25. Collecting that bid as the premium represents a 10% return against the $22.50 commitment, or a 15.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost ).
Selling a put does not give an investor access to AAOI's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $22.50 strike if doing so produced a better outcome than selling at the going market price. ( Do options carry counterparty risk? This and six other common options myths debunked ). So unless Applied Optoelectronics Inc sees its shares fall 43.6% and the contract is exercised (resulting in a cost basis of $20.25 per share before broker commissions, subtracting the $2.25 from $22.50), the only upside to the put seller is from collecting that premium for the 15.7% annualized rate of return.
Below is a chart showing the trailing twelve month trading history for Applied Optoelectronics Inc, and highlighting in green where the $22.50 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the June 2018 put at the $22.50 strike for the 15.7% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Applied Optoelectronics Inc (considering the last 253 trading day closing values as well as today's price of $39.98) to be 85%. For other put options contract ideas at the various different available expirations, visit the AAOI Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Thursday, the put volume among S&P 500 components was 784,134 contracts, with call volume at 784,134, for a put:call ratio of 0.73 so far for the day, which is above normal compared to the long-term median put:call ratio of .65. In other words, if we look at the number of call buyers and then use the long-term median to project the number of put buyers we'd expect to see, we're actually seeing more put buyers than expected out there in options trading so far today. Find out which 15 call and put options traders are talking about today .
Top YieldBoost Puts of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors considering a purchase of Applied Optoelectronics Inc (Symbol: AAOI) stock, but tentative about paying the going market price of $39.98/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAOI's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. For other put options contract ideas at the various different available expirations, visit the AAOI Stock Options page of StockOptionsChannel.com.
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Investors considering a purchase of Applied Optoelectronics Inc (Symbol: AAOI) stock, but tentative about paying the going market price of $39.98/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAOI's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. For other put options contract ideas at the various different available expirations, visit the AAOI Stock Options page of StockOptionsChannel.com.
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Investors considering a purchase of Applied Optoelectronics Inc (Symbol: AAOI) stock, but tentative about paying the going market price of $39.98/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAOI's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. For other put options contract ideas at the various different available expirations, visit the AAOI Stock Options page of StockOptionsChannel.com.
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Investors considering a purchase of Applied Optoelectronics Inc (Symbol: AAOI) stock, but tentative about paying the going market price of $39.98/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAOI's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. For other put options contract ideas at the various different available expirations, visit the AAOI Stock Options page of StockOptionsChannel.com.
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948e6ebd-e9b6-46f7-bc45-39482baf291c
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9748.0
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2017-10-25 00:00:00 UTC
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Rebound in Shares of Applied Optoelectronics Inc Is Hardly Assured
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AAOI
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https://www.nasdaq.com/articles/rebound-in-shares-of-applied-optoelectronics-inc-is-hardly-assured-2017-10-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) took another dive when the company issued preliminary results on October 12 that shook investor confidence. The company blamed a single customer for the miss but reaffirmed its profitability for the quarter. With the stock trading at a P/E below 10 and with solid 40% sales growth in the past five years, will AAOI stock recover?
Source: Shutterstock
Applied Optoelectronics lowered its revenue target to $88 million to $89 million, down from $107 million to $115 million. Non-GAAP EPS will fall as low as $1.04 a share, down from the $1.30 - $1.43 per share range. The revenue and earnings miss is not a small one.
Preliminary Outlook for AAOI Stock
The company clearly failed to anticipate a contract cancellation or delay from a major customer. That customer is likely Amazon.com, Inc. (NASDAQ: AMZN ), which is balancing its 100G and 40G orders. Amazon may have cut its orders for the slower 40G in favor of 100G. Even though demand for both networks is strong in the industry, Applied Optoelectronics relied too much on a single customer for all its revenue in the quarter.
4 High-Yield, High-Risk Dividend Stocks That Aren't Worth It
Shareholders are unfortunately suffering from the company depending on Amazon for most of its revenue. Now that Amazon is around 10 percent of sales, the revised guidance does not look bad. So long as Amazon's order cut for 40G is due to the 100G transition and not a canceled order, AAOI stock looks oversold. The upside is even higher if Amazon is only delaying its orders for 100G, instead of pushing out its orders for Q4.
Bearishness Rises Sharply in AAOI
As AAOI stock rose, so did short selling. On August 31, 2017, short interest topped 12.96M shares as AAOI peaked at $103.41 a share. But bears are not done yet, as short interest rose further despite the stock closing lower at $60 a share at the end of September.
Settlement DateShort InterestAvg Daily Share Volume 9/29/2017 13,079,825 2,922,808 9/15/2017 13,247,898 1,925,617 8/31/2017 12,956,196 2,359,059 8/15/2017 10,675,524 5,996,263 7/31/2017 8,713,039 4,595,603 7/14/2017 10,750,517 3,477,173
Source: Nasdaq.com
A value investor may think that AAOI's steep stock discount (with a P/E of 9.9 and forward P/E of 9) would dissuade more bearish bets. This group of investors may have held a big enough position to hurt the stock price. But the company's short-term fundamentals are deteriorating because of the concentrated reliance on a few customers and a specific niche in the networking market.
Per finbox.io , AAOI's historical view of its income statement shows that the company did not raise its R&D spending enough at an absolute level as revenue grew more than five-fold between fiscal 2011 and 2016. Though R&D rose at the same pace (five-fold), the company only spent $32 million in fiscal 2016 when revenue topped $261 million. This leaves the company vulnerable to competitors entering the market.
Source: finbox.io (click link to enter your own assumptions)
Applied Optoelectronics Inc (AAOI) Stock Is Just Not Cheap Enough Yet
Takeaway for AAOI Stock
Markets are fretting over Applied Optoelectronics' lost or delayed business with Amazon. Management still did not clear up what happened and what led to its significantly lowered forecast. In the upcoming Q3 report, the company must reassure shareholders that Amazon is still a key customer and that the e-commerce giant is buying 100G equipment from AAOI. If not, then management needs to build its customer base or risk lowering its outlook yet again. In the meantime, shareholders must decide if the stock is worth its current price. If the customer transition from 40G to 100G is only slowing orders in the short term, the business in the longer term is still healthy. But if AAOI is permanently losing customers, then the stock will have more downside ahead.
The author does not have a position in any of the stocks mentioned. AAOI is a top idea on the DIY Value Investing Newsletter.
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The post Rebound in Shares of Applied Optoelectronics Inc Is Hardly Assured appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Preliminary Outlook for AAOI Stock The company clearly failed to anticipate a contract cancellation or delay from a major customer. Settlement DateShort InterestAvg Daily Share Volume 9/29/2017 13,079,825 2,922,808 9/15/2017 13,247,898 1,925,617 8/31/2017 12,956,196 2,359,059 8/15/2017 10,675,524 5,996,263 7/31/2017 8,713,039 4,595,603 7/14/2017 10,750,517 3,477,173 Source: Nasdaq.com A value investor may think that AAOI's steep stock discount (with a P/E of 9.9 and forward P/E of 9) would dissuade more bearish bets. Per finbox.io , AAOI's historical view of its income statement shows that the company did not raise its R&D spending enough at an absolute level as revenue grew more than five-fold between fiscal 2011 and 2016.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) took another dive when the company issued preliminary results on October 12 that shook investor confidence. Source: finbox.io (click link to enter your own assumptions) Applied Optoelectronics Inc (AAOI) Stock Is Just Not Cheap Enough Yet Takeaway for AAOI Stock Markets are fretting over Applied Optoelectronics' lost or delayed business with Amazon. With the stock trading at a P/E below 10 and with solid 40% sales growth in the past five years, will AAOI stock recover?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) took another dive when the company issued preliminary results on October 12 that shook investor confidence. Source: finbox.io (click link to enter your own assumptions) Applied Optoelectronics Inc (AAOI) Stock Is Just Not Cheap Enough Yet Takeaway for AAOI Stock Markets are fretting over Applied Optoelectronics' lost or delayed business with Amazon. More From InvestorPlace 3 Stocks to Buy Instead of Twitter Inc Applied Optoelectronics Inc (AAOI) Stock Looks Like a Steal Under $50 10 Stocks Set to Benefit From Self-Driving Cars The post Rebound in Shares of Applied Optoelectronics Inc Is Hardly Assured appeared first on InvestorPlace .
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So long as Amazon's order cut for 40G is due to the 100G transition and not a canceled order, AAOI stock looks oversold. On August 31, 2017, short interest topped 12.96M shares as AAOI peaked at $103.41 a share. Source: finbox.io (click link to enter your own assumptions) Applied Optoelectronics Inc (AAOI) Stock Is Just Not Cheap Enough Yet Takeaway for AAOI Stock Markets are fretting over Applied Optoelectronics' lost or delayed business with Amazon.
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cd20c712-e104-40e8-a506-6d4933c78edd
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9749.0
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2017-10-16 00:00:00 UTC
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Ignore Warren Buffett, Give International Business Machines Corp. (IBM) Stock a Chance
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AAOI
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https://www.nasdaq.com/articles/ignore-warren-buffett-give-international-business-machines-corp.-ibm-stock-a-chance-2017
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
CNBC's Becky Quick caught up with Warren Buffett before this past May's Berkshire Hathaway Inc. (NYSE: BRK.A ,NYSE: BRK.B ) annual meeting in Omaha, Nebraska, to ask him about International Business Machines Corp. (NYSE: IBM ) and his decision to sell about one-third of his company's 81 million shares of IBM stock.
Source: Shutterstock
His answer put a little scare into would-be investors of IBM stock and it's yet to recover.
The 7 Best Market-Beating Tech Stocks to Buy
"I don't value IBM the same way that I did 6 years ago when I started buying … I've revalued it somewhat downward," Buffett told CNBC. "When it got above $180, we actually sold a reasonable amount of stock."
Consider this: Buffett sold approximately 27 million IBM stock shares in the first five months of the year. IBM's current short interest of 20.3 million shares takes six days to cover. Buffett disposed of a stake 30% larger than the current short interest starting at $180 down to the low $160s.
It's conceivable that Buffett's actions have inflicted most of the damage on IBM stock so far in 2017. Other than the ongoing revenue reduction, there's been little else in the way of IBM news to suggest the company is on the verge of collapse.
The Glass Is Half Full
InvestorPlace's Ian Bezek sees the glass half full and so do I. His rationale rests on Watson and artificial intelligence, blockchain and bitcoin, and the cloud - all potentially lucrative to IBM's top and bottom lines.
However (and Bezek mentions this in his article ), we all know IBM's failure to produce evidence of either revenue or income growth in recent quarters and that , more than anything, has investors rightfully suspicious.
I quickly went through the company's second quarter 2017 10-Q and, except for its Cognitive Solutions segment (which includes Watson), every one of its other segments had lower pre-tax income margins for the three months ended June 30.
Cognitive solutions' Q2 2017 external revenue of $4.6 billion was approximately $116 million lower than in the same period a year earlier and represents just 24% of its overall external revenue.
Its Technology Services & Cloud Platforms segment, which accounted for 44% of its overall revenue in the second quarter, saw pre-tax income margins shrink by 240 basis points.
So, yes, an investment in IBM stock right now requires an ample dose of faith. To skeptics, the glass is not half full.
Here's Why I See It Differently
The first thing I do when looking at a beaten-down stock is go back and look at a company's best years over a 10-year period. It gives you perspective on what the company was doing right compared to today.
In the case of IBM, its best year in terms of revenue over the past decade was 2011 when it generated $106.9 billion . Its best year as far as operating profits go was 2012, when it generated $21.1 billion.
In the trailing 12 months ended June 30, IBM's revenue and operating profits were $78.4 billion and $12.5 billion respectively. That's 27% less revenue and 41% less operating profits.
Not good, right? That's true if you're looking at these numbers in a vacuum. But, of course, we're not. What we're looking at is a company with $78 billion in annual revenue and operating profits of almost $13 billion.
IBM is still a rather substantial business.
Free Cash Flow is Key
The IBM stock dividend currently yields 4.1%. Income investors are likely fully aware of this. In the trailing 12 months, IBM paid out approximately $5.4 billion in dividends. That's 46% of its $11.7 billion in free cash flow leaving it with 54% to pay down debt, invest in its business, repurchase shares and make acquisitions.
Financially, it's got a long way to self-destruct before investors need to be remotely concerned about their dividend income.
Now, consider its free cash flow generation as a percentage of both sales and net income. According to Morningstar , it's 1.02 times net income and 14.86% of sales. Over at Apple Inc. (NASDAQ: AAPL ), generally thought to be the S&P 500 leader when it comes to free cash flow, its $51.2 billion in free cash flow for the trailing 12 months is 1.1 times net income and 22.9% of sales.
So, IBM's free cash flow generation relative to net income isn't that much different than Apple's. Yet, IBM has a cash return - (free cash flow plus interest expense) / enterprise value - of 7.2%, 90 basis points higher than the cash flow king.
Bottom Line on IBM Stock
There's a temptation to look at the paragraph above and say to yourself, "You know what, I'll give up the 90 basis points to own a company that's growing revenues and net income."
That's flawed thinking, because, in the case of IBM, although its free cash flow is about 22% less today than in 2011 and 2012, that's still lower than the drop in revenue and operating profits over the same period.
Buy These 5 Low Price-to-Book Value Stocks for Good Returns
Under challenging circumstances, IBM's managed to run a very tight ship - and that's probably not reflected in its current share price.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
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The post Ignore Warren Buffett, Give International Business Machines Corp. (IBM) Stock a Chance appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More From InvestorPlace Applied Optoelectronics Inc (AAOI) Stock Looks Like a Steal Under $50 Twitter Inc: All News Is Bad News for TWTR Stock 10 Smart Money Stocks to Sell for 2018 The post Ignore Warren Buffett, Give International Business Machines Corp. (IBM) Stock a Chance appeared first on InvestorPlace . His rationale rests on Watson and artificial intelligence, blockchain and bitcoin, and the cloud - all potentially lucrative to IBM's top and bottom lines. However (and Bezek mentions this in his article ), we all know IBM's failure to produce evidence of either revenue or income growth in recent quarters and that , more than anything, has investors rightfully suspicious.
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More From InvestorPlace Applied Optoelectronics Inc (AAOI) Stock Looks Like a Steal Under $50 Twitter Inc: All News Is Bad News for TWTR Stock 10 Smart Money Stocks to Sell for 2018 The post Ignore Warren Buffett, Give International Business Machines Corp. (IBM) Stock a Chance appeared first on InvestorPlace . In the trailing 12 months ended June 30, IBM's revenue and operating profits were $78.4 billion and $12.5 billion respectively. Over at Apple Inc. (NASDAQ: AAPL ), generally thought to be the S&P 500 leader when it comes to free cash flow, its $51.2 billion in free cash flow for the trailing 12 months is 1.1 times net income and 22.9% of sales.
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More From InvestorPlace Applied Optoelectronics Inc (AAOI) Stock Looks Like a Steal Under $50 Twitter Inc: All News Is Bad News for TWTR Stock 10 Smart Money Stocks to Sell for 2018 The post Ignore Warren Buffett, Give International Business Machines Corp. (IBM) Stock a Chance appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips CNBC's Becky Quick caught up with Warren Buffett before this past May's Berkshire Hathaway Inc. (NYSE: BRK.A ,NYSE: BRK.B ) annual meeting in Omaha, Nebraska, to ask him about International Business Machines Corp. (NYSE: IBM ) and his decision to sell about one-third of his company's 81 million shares of IBM stock. Over at Apple Inc. (NASDAQ: AAPL ), generally thought to be the S&P 500 leader when it comes to free cash flow, its $51.2 billion in free cash flow for the trailing 12 months is 1.1 times net income and 22.9% of sales.
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More From InvestorPlace Applied Optoelectronics Inc (AAOI) Stock Looks Like a Steal Under $50 Twitter Inc: All News Is Bad News for TWTR Stock 10 Smart Money Stocks to Sell for 2018 The post Ignore Warren Buffett, Give International Business Machines Corp. (IBM) Stock a Chance appeared first on InvestorPlace . Consider this: Buffett sold approximately 27 million IBM stock shares in the first five months of the year. That's 46% of its $11.7 billion in free cash flow leaving it with 54% to pay down debt, invest in its business, repurchase shares and make acquisitions.
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f5c15113-7e27-44f8-9cdc-c19a01d453f6
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9750.0
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2017-10-13 00:00:00 UTC
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Technology Sector Update for 10/13/2017: LDOS, EXFO, AAOI, WB, SINA
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-10132017-ldos-exfo-aaoi-wb-sina-2017-10-13
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nan
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nan
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Top Tech Stocks
MSFT +0.32%
AAPL +0.67%
IBM +0.23%
CSCO +0.66%
GOOG +0.66%
Technology stocks were helping lead the broader U.S. markets to modest Friday gains, with shares of tech companies in the S&P 500 climbing more than 0.5%.
In company news, Leidos Holdings ( LDOS ) again reached a new record high after the technology and engineering consulting company late yesterday said it received a prime contract award from the National Geospatial-Intelligence Agency worth almost $1 billion over its five-year term.
Under terms of the single-award, indefinite-delivery/indefinite-quantity, firm-fixed price contract with the U.S. Department of Defense unit, Leidos will support user-facing services for the agency's Information Technology Enterprise Management program, providing it with a bridge to the future - helping users to harness the capacity of geospatial intelligence and other emerging technologies as well as preparing them for future Intelligence Community Desktop Environment service offerings.
The company also will transition user-facing services from current agency contracts, working on continuous program improvements and responding to special orders and other program needs without disrupting daily operations. The contract has a total ceiling of $988 million.
In other sector news,
(+) MARK (+21.4%) Sina Weibo uses the company 's 3D facial-feature-tracking technology in itss SuiShouPai mobile application, demonstrating "we are able to monetize our artificial-intelligence technology," according to Remark CEO Kai-ShingTao.
(-) AAOI, (-18.8%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. That trails prior forecast looking for non-GAAP EPS of $1.30 to $1.43 and $107 mln to $115 mln in revenue. It also misses the Capital IQ consensus expecting a non-GAAP profit of $1.31 per share on $111.5 mln in revenue.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(-) AAOI, (-18.8%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. Technology stocks were helping lead the broader U.S. markets to modest Friday gains, with shares of tech companies in the S&P 500 climbing more than 0.5%. In company news, Leidos Holdings ( LDOS ) again reached a new record high after the technology and engineering consulting company late yesterday said it received a prime contract award from the National Geospatial-Intelligence Agency worth almost $1 billion over its five-year term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. (-) AAOI, (-18.8%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. In company news, Leidos Holdings ( LDOS ) again reached a new record high after the technology and engineering consulting company late yesterday said it received a prime contract award from the National Geospatial-Intelligence Agency worth almost $1 billion over its five-year term.
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(-) AAOI, (-18.8%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. In company news, Leidos Holdings ( LDOS ) again reached a new record high after the technology and engineering consulting company late yesterday said it received a prime contract award from the National Geospatial-Intelligence Agency worth almost $1 billion over its five-year term. Under terms of the single-award, indefinite-delivery/indefinite-quantity, firm-fixed price contract with the U.S. Department of Defense unit, Leidos will support user-facing services for the agency's Information Technology Enterprise Management program, providing it with a bridge to the future - helping users to harness the capacity of geospatial intelligence and other emerging technologies as well as preparing them for future Intelligence Community Desktop Environment service offerings.
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(-) AAOI, (-18.8%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. Top Tech Stocks Technology stocks were helping lead the broader U.S. markets to modest Friday gains, with shares of tech companies in the S&P 500 climbing more than 0.5%.
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eb47012d-0fe2-43aa-8899-31bc56d935a5
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9751.0
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2017-10-13 00:00:00 UTC
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Applied Opto Plunges: More Pain to Come? Finisar at Risk?
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AAOI
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https://www.nasdaq.com/articles/applied-opto-plunges-more-pain-come-finisar-risk-2017-10-13
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nan
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nan
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Shares of fiber-optic component vendor Applied Optoelectronics (AAOI) are down $11.62, or almost 20%, at $47.22, in pre-market trading, continuing last night's losses, after the company warned it will miss its prior forecast for Q3 because of a shortfall of sales from its largest cloud computing customer, Amazon (AMZN).
On a conference call following the report, the company's CFO, Steffan Murray, and CEO Dr. Thompson Linexpressed confidence in the business, and said that the breach in sales was something that could affect other vendors, not just Applied.
Hamed Khorsand with the boutique firm BWS Financial, who had been one of the more vocal skeptics of Applied, this morning reiterates his Sell rating, writing that "AAOI will have a difficult time in recovering lost revenue from AMZN at the 100G level because there are several competitors AMZN already uses for 100G, not just AAOI."
Among others, Intel (INTC) is now a factor, he writes:
Intel who started to ship competing CWDM4 transceivers in the third quarter. The product release from INTC poses a threat to 100G revenue AAOI has been generating from Facebook.
Among bulls, there are questions. Needham & Co.'s Alex Henderson reiterates a Strong Buy rating, but he slashes his price target to $75 from $115, writing that the announcement "leaves many questions unanswered":
Why did sales to its largest customer (most likely Amazon given its nearly 50% sales concentration in 2Q) fall off so sharply? Was it competition? Was it timing of builds that stalled? Was it the shift to 100G is going to another vendor and if so why? Has increased competition from Intel altered the landscape? Is this a temporary lull in demand as the customer transitions designs to the new speed products? If there was an inventory build does that imply future GM pressure as the inventory is worked off? If the inventory is 40G does that imply a continued disconnect between current capacity of 100G and 40G? Does the work down of this inventory imply future GM pressure?
He still thinks "better days are ahead for AAOI."
Among those defending the shares this morning, Simon Leopold with Raymond James reiterates a Strong Buy rating, but cuts his price target to $86 from $107, writing that "this is not the time to sell."
Writes Leopold, "Top customer Amazon is in a transition, while other customers are growing robustly, and that the market for data center optical transceivers remains healthy."
He thinks Applied benefits "even with less share at 100G than it held in 40G."
Some analysts this morning are heeding CFO Murray's warning there could be problems for other fiber component vendors.
William Blair's Dmitry Netis, for example, writes that "it is not entirely clear what is going on at Amazon," but nevertheless, he believes "there is incremental risk" to competitor Finisar (FNSR).
He notes "Finisar's entire 40G business composes roughly 18%-20% of overall revenue (or about $45 million-$50 million)." While it is the biggest supplier of "100G QSFP28 transceivers," it's also capacity constrained, he notes, so may not be able to fill all orders Amazon might have.
He does, though, think the stock "is already discounting deceleration in the October quarter."
As for Lumentum (LITE) and Oclaro (OCLR), they are "isolated from the issue" because they don't have any "meaningful" 40G "exposure."
And Acacia Communications (ACIA) doesn't have any exposure to Amazon, he notes. In fact, Netis thinks Acacia is the "best idea on a pullback in optical names from AOI's news."
Dougherty & Co.'s Jon Fisher defends shares of AXT Inc. (AXTI) and Emcore (EMKR), writing "we would use any weakness in the stocks as a buying opportunity" given that "data centers are a future growth opportunity for them and not a meaningful contributor."
Weakness at AAOI, he argues, "could potentially be a positive data center opportunity for EMKR if there is a change in the dynamic with how the large data center opportunities acquire their optical components."
His talks with AXT executives "remain very strong and they were bullish on the near-term and longer-term growth outlook from the end market."
Shares of Finisar are unchanged this morning at $22.28. Shares of Lumentum are down $1.20, or 2%, at $57.75; shares of Oclaro are down 11 cents, or 1%, at $8.50; and shares of Acacia are down 83 cents, or 1.8%, at $45.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of fiber-optic component vendor Applied Optoelectronics (AAOI) are down $11.62, or almost 20%, at $47.22, in pre-market trading, continuing last night's losses, after the company warned it will miss its prior forecast for Q3 because of a shortfall of sales from its largest cloud computing customer, Amazon (AMZN). Hamed Khorsand with the boutique firm BWS Financial, who had been one of the more vocal skeptics of Applied, this morning reiterates his Sell rating, writing that "AAOI will have a difficult time in recovering lost revenue from AMZN at the 100G level because there are several competitors AMZN already uses for 100G, not just AAOI." The product release from INTC poses a threat to 100G revenue AAOI has been generating from Facebook.
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Shares of fiber-optic component vendor Applied Optoelectronics (AAOI) are down $11.62, or almost 20%, at $47.22, in pre-market trading, continuing last night's losses, after the company warned it will miss its prior forecast for Q3 because of a shortfall of sales from its largest cloud computing customer, Amazon (AMZN). Hamed Khorsand with the boutique firm BWS Financial, who had been one of the more vocal skeptics of Applied, this morning reiterates his Sell rating, writing that "AAOI will have a difficult time in recovering lost revenue from AMZN at the 100G level because there are several competitors AMZN already uses for 100G, not just AAOI." The product release from INTC poses a threat to 100G revenue AAOI has been generating from Facebook.
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Shares of fiber-optic component vendor Applied Optoelectronics (AAOI) are down $11.62, or almost 20%, at $47.22, in pre-market trading, continuing last night's losses, after the company warned it will miss its prior forecast for Q3 because of a shortfall of sales from its largest cloud computing customer, Amazon (AMZN). Hamed Khorsand with the boutique firm BWS Financial, who had been one of the more vocal skeptics of Applied, this morning reiterates his Sell rating, writing that "AAOI will have a difficult time in recovering lost revenue from AMZN at the 100G level because there are several competitors AMZN already uses for 100G, not just AAOI." The product release from INTC poses a threat to 100G revenue AAOI has been generating from Facebook.
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Shares of fiber-optic component vendor Applied Optoelectronics (AAOI) are down $11.62, or almost 20%, at $47.22, in pre-market trading, continuing last night's losses, after the company warned it will miss its prior forecast for Q3 because of a shortfall of sales from its largest cloud computing customer, Amazon (AMZN). Hamed Khorsand with the boutique firm BWS Financial, who had been one of the more vocal skeptics of Applied, this morning reiterates his Sell rating, writing that "AAOI will have a difficult time in recovering lost revenue from AMZN at the 100G level because there are several competitors AMZN already uses for 100G, not just AAOI." The product release from INTC poses a threat to 100G revenue AAOI has been generating from Facebook.
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93dbbedb-c5bc-40a6-a81c-aa7f6f2ac9a1
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9752.0
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2017-10-13 00:00:00 UTC
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Friday’s Vital Data: AT&T Inc. (T), Citigroup Inc (C) and Snap Inc (SNAP)
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AAOI
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https://www.nasdaq.com/articles/fridays-vital-data%3A-att-inc.-t-citigroup-inc-c-and-snap-inc-snap-2017-10-13
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. stock futures are trending higher this morning, as Wall Street prepares for another round of corporate earnings and a pair of key economic reports. On the earnings side, we have more results from U.S. banking giants Bank of America Corp (NYSE: BAC ) and PNC Financial Services Group Inc (NYSE: PNC ), which traders hope won't follow in the paths of Citigroup Inc. (NYSE: C ) and JPMorgan Chase & Co. (NYSE: JPM ), which sold off yesterday.
On the economic data front, key inflation data from the September Consumer Prices Index and Core CPI are slated for release, as well as September retail sales data and October consumer sentiment.
Heading into the open, futures on the Dow Jones Industrial Average are up 0.14%, with S&P 500 futures rising 0.013% and Nasdaq-100 futures higher by 0.21%%.
In the options pits, volume was above average on Thursday, with about 14.1 million calls and 12.5 million puts crossing the tape. On the CBOE, the single-session equity put/call volume ratio leapt to 0.70, driving the 10-day moving average back up to 0.64.
Taking a closer look at Thursday's volume, AT&T Inc. (NYSE: T ) attracted another round of put option volume as analysts looked more closely at the company's subscriber losses. Meanwhile, Citigroup options traders ignored rising consumer credit issues and falling C shares in favor of call options. Finally, analysts praised Snap Inc's (NYSE: SNAP ) user engagement among teens.
AT&T Inc. (T)
As I reported yesterday morning, AT&T came under scrutiny after issuing a third-quarter earnings and revenue warning . As analysts took a closer look at AT&T's loss of 90,000 subscribers, however, a more worrisome pattern emerged.
7 Spinoff Stocks That Could Be Better Than Their Parents
The company said it lost 90,000 U.S. video subscribers due to intense competition in traditional pay TV markets and the impact of the recent hurricanes.
However, those losses were closer to 390,000 subscribers in its satellite and U-verse services. AT&T's DirecTV Now online streaming service added 300,000 subs during the quarter, making up the difference in the number reported.
Analysts noted that this was key to AT&T's bottom line, as the satellite and U-verse subs were higher value than the lower paying DirecTV Now subs - which brings in far less revenue.
T options traders flooded the stock with puts for the second day in a row following the announcement. Volume rose to a near-term high of over 455,000 contracts, with puts claiming 54% of the day's take.
That said, the October put/call open interest ratio dipped from 2.01 on Thursday to today's perch at 1.92, likely due to profit taking among bearish T traders.
That said, recent T stock action has put my recommended Oct $35/$36 bear put spread back in play. Here's hoping those who traded the alternative recommendation, the Oct $38/$39 bull call spread closed out their trades for maximum profits before last Friday's retreat.
Citigroup Inc (C)
All in all, Citigroup's third-quarter earnings didn't look too bad. The banking giant said it earned $1.42 per share on revenue of $18.17 billion, versus expectations for $1.32 on revenue of $17.9 billion.
However, fixed income investments remained a considerable drag on Citigroup's bottom line. Furthermore, serious concerns about rising consumer credit defaults and "notably disappointing" trends in credits cards ultimately sunk C stock yesterday.
C options traders didn't appear too worried about the rising potential for consumer credit card defaults, however. Volume leapt to over 271,000 contracts, nearly triple C's average, while calls gobbled up 69% of the day's take.
Still, much of yesterday's call activity could have been profit taking, as the October put/call OI ratio now rests at 0.79, which is well above the midpoint of all such readings taken this year.
C stock bulls should watch for a shift in options sentiment toward puts as a warning sign that deeper losses are on the horizon.
Snap Inc (SNAP)
The Snap bulls are at it again. SNAP stock was hit with a pair of bullish research notes in the past two days, with both Credit Suisse and Piper Jaffray coming out in support of the shares . Credit Suisse lifted its price target to $20 from $17 citing increased user engagement in Snapchat, while Piper Jaffray said its recent survey suggested Snapchat is crushing it with U.S. teens.
That said, this is the second time this year Piper Jaffray has been a cheerleader for SNAP with teen surveys. Furthermore, user engagement has never been an issue for Snap - revenue and user monetization is the real issue.
New Micron Technology, Inc. (MU) Stock Offering Merits Cheers Not Jeers
But SNAP options traders are buying into the hype once again, with bullish calls making up 64% of yesterday's total volume of more than 233,000 contracts - more than four times SNAP's daily average. However, cooler heads are prevailing when it comes to Snap's third-quarter earnings report, as the November put/call OI ratio rests at an elevated 1.44.
Traders should watch this reading for signs of trending bullish ahead of earnings. It may be a signal to bet against Snap's quarterly report should enthusiasm grow too much.
As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.
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10 Smart Money Stocks to Sell for 2018
Despite Dips, Applied Optoelectronics Inc (AAOI) Stock Isn't For Heroes
The post Friday's Vital Data: AT&T Inc. (T), Citigroup Inc (C) and Snap Inc (SNAP) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bitcoin Will Hit $10,000 on This Date 10 Smart Money Stocks to Sell for 2018 Despite Dips, Applied Optoelectronics Inc (AAOI) Stock Isn't For Heroes The post Friday's Vital Data: AT&T Inc. (T), Citigroup Inc (C) and Snap Inc (SNAP) appeared first on InvestorPlace . 7 Spinoff Stocks That Could Be Better Than Their Parents The company said it lost 90,000 U.S. video subscribers due to intense competition in traditional pay TV markets and the impact of the recent hurricanes. SNAP stock was hit with a pair of bullish research notes in the past two days, with both Credit Suisse and Piper Jaffray coming out in support of the shares .
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Bitcoin Will Hit $10,000 on This Date 10 Smart Money Stocks to Sell for 2018 Despite Dips, Applied Optoelectronics Inc (AAOI) Stock Isn't For Heroes The post Friday's Vital Data: AT&T Inc. (T), Citigroup Inc (C) and Snap Inc (SNAP) appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. stock futures are trending higher this morning, as Wall Street prepares for another round of corporate earnings and a pair of key economic reports. Taking a closer look at Thursday's volume, AT&T Inc. (NYSE: T ) attracted another round of put option volume as analysts looked more closely at the company's subscriber losses.
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Bitcoin Will Hit $10,000 on This Date 10 Smart Money Stocks to Sell for 2018 Despite Dips, Applied Optoelectronics Inc (AAOI) Stock Isn't For Heroes The post Friday's Vital Data: AT&T Inc. (T), Citigroup Inc (C) and Snap Inc (SNAP) appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. stock futures are trending higher this morning, as Wall Street prepares for another round of corporate earnings and a pair of key economic reports. New Micron Technology, Inc. (MU) Stock Offering Merits Cheers Not Jeers But SNAP options traders are buying into the hype once again, with bullish calls making up 64% of yesterday's total volume of more than 233,000 contracts - more than four times SNAP's daily average.
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Bitcoin Will Hit $10,000 on This Date 10 Smart Money Stocks to Sell for 2018 Despite Dips, Applied Optoelectronics Inc (AAOI) Stock Isn't For Heroes The post Friday's Vital Data: AT&T Inc. (T), Citigroup Inc (C) and Snap Inc (SNAP) appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. stock futures are trending higher this morning, as Wall Street prepares for another round of corporate earnings and a pair of key economic reports. Taking a closer look at Thursday's volume, AT&T Inc. (NYSE: T ) attracted another round of put option volume as analysts looked more closely at the company's subscriber losses.
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aade5626-f3e6-44d7-ab1a-88734a70db57
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9753.0
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2017-10-13 00:00:00 UTC
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Technology Sector Update for 10/13/2017: SOHU,EXFO,AAOI
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-10132017-sohuexfoaaoi-2017-10-13
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nan
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nan
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Top Tech Stocks
MSFT +0.63%
AAPL +0.60%
IBM +0.13%
CSCO +0.87%
GOOG +0.32%
Technology stocks helped lead the broader U.S. markets to modest gains Friday, with shares of tech companies in the S&P 500 ( XLK ) climbing more than 0.5%. In company news, Sohu.com ( SOHU ) reached a two-year high on Friday, climbing to its best price since May 2015 at $66.77 a share after the online media and gaming company today disclosed plans to spin off its Sogou online search and search-related services subsidiary through an initial public offering of its American depository shares, filing a registration statement for the upcoming IPO with the U.S. Securities and Exchange Commission.
The company did not say how many ADS it expects to sell, their price or other details of the proposed IPO other than saying it expects the new company will trade under the "SOGO" ticker on the New York Stock Exchange. It also did not say when it expects to complete the spinoff transaction and offering.
In other sector news,
(+) MARK Sina Weibo uses the company 's 3D facial-feature-tracking technology in itss SuiShouPai mobile application, demonstrating "we are able to monetize our artificial-intelligence technology," according to Remark CEO Kai-ShingTao.
(-) AAOI, (-21.3%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. That trails prior forecast looking for non-GAAP EPS of $1.30 to $1.43 and $107 mln to $115 mln in revenue. It also misses the Capital IQ consensus expecting a non-GAAP profit of $1.31 per share on $111.5 mln in revenue.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(-) AAOI, (-21.3%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. Technology stocks helped lead the broader U.S. markets to modest gains Friday, with shares of tech companies in the S&P 500 ( XLK ) climbing more than 0.5%. In company news, Sohu.com ( SOHU ) reached a two-year high on Friday, climbing to its best price since May 2015 at $66.77 a share after the online media and gaming company today disclosed plans to spin off its Sogou online search and search-related services subsidiary through an initial public offering of its American depository shares, filing a registration statement for the upcoming IPO with the U.S. Securities and Exchange Commission.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. (-) AAOI, (-21.3%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. Technology stocks helped lead the broader U.S. markets to modest gains Friday, with shares of tech companies in the S&P 500 ( XLK ) climbing more than 0.5%.
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(-) AAOI, (-21.3%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. Technology stocks helped lead the broader U.S. markets to modest gains Friday, with shares of tech companies in the S&P 500 ( XLK ) climbing more than 0.5%. In company news, Sohu.com ( SOHU ) reached a two-year high on Friday, climbing to its best price since May 2015 at $66.77 a share after the online media and gaming company today disclosed plans to spin off its Sogou online search and search-related services subsidiary through an initial public offering of its American depository shares, filing a registration statement for the upcoming IPO with the U.S. Securities and Exchange Commission.
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(-) AAOI, (-21.3%) Sees adjusted Q3 net income in a range of $1.04 to $1.09 per share on between $88 mln to $89 mln in revenue, according to preliminary estimates. Technology stocks helped lead the broader U.S. markets to modest gains Friday, with shares of tech companies in the S&P 500 ( XLK ) climbing more than 0.5%. The company did not say how many ADS it expects to sell, their price or other details of the proposed IPO other than saying it expects the new company will trade under the "SOGO" ticker on the New York Stock Exchange.
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e25c69e4-e76d-4e58-9f1e-8169c73d5b33
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9754.0
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2017-10-13 00:00:00 UTC
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Costco Wholesale Corporation (COST) News Is Going to Stay Bumpy for a While
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AAOI
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https://www.nasdaq.com/articles/costco-wholesale-corporation-cost-news-is-going-to-stay-bumpy-for-a-while-2017-10-13
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Over the past few months, Costco Wholesale Corporation (NASDAQ: COST ) shareholders have learned how the rest of the market lives. Following the financial crisis, COST stock has had a basically uninterrupted bull run. Costco news seemed continually positive, earnings rose steadily and dividends rose each year, with special dividends only adding to the good COST news.
Source: Shutterstock
The ride's become a bit bumpier of late, however. COST stock has gapped down three times just since February. A new all-time high above $180, reached in June, was undercut by two key pieces of non-Costco news.
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First, Kroger Co (NYSE: KR ) cut its guidance , raising fears of deflation-fueled margin pressure across the grocery sector. The very next day, Amazon.com, Inc. (NASDAQ: AMZN ) acquired Whole Foods Market , adding to margin concerns.
Costco stock would lose 15% of its value in just three weeks, with another rally snuffed out by a sell-off after Costco earnings last week. COST now is back within shouting distance of year-to-date lows around $150. It's been a volatile year so far for Costco stock - and I expect that volatility to continue.
Impacts Beyond Costco News and Costco Earnings
The biggest reason I expect choppy trading in COST going forward is that the grocery space, as a whole, has a lot of uncertainty. It's going to take some time for investors to sort out the impact of Amazon's entry into the space. The less discussed, but more important, deflationary trend in grocery overall continues, though it appears to have moderated somewhat of late.
COST bulls might argue that overall grocery prices aren't a major mover for Costco stock. After all, roughly 70% of the company's profit comes from membership fees. And, of course, Costco also sells gasoline and general merchandise.
But the impact of pricing and growth elsewhere is a big deal for Costco. If Kroger and Wal-Mart Stores Inc (NYSE: WMT ) are cutting prices, the relative value offered by a Costco membership changes. If Walmart's Jet.com continues to grow, it could potentially take share from Costco in warehouse-size products (including non-food items). The reason grocery stocks have fallen so much since June - KR is down about 30% for instance, as is smaller SUPERVALU Inc. (NYSE: SVU ) - is that margins are so narrow that pricing pressure has a major bottom-line impact.
That's true for Costco, with an operating margin of just 3.19%, as well. Take 10 or 20 basis points off that figure from lower pricing or lower membership fee growth, and even mid-single-digit sales growth leads to Costco earnings going nowhere. That's a potentially big problem for a stock trading at around 27 times those earnings.
The issue in the near term, then, is that Costco stock isn't just going to move on Costco news or Costco earnings. Every quarter from Walmart, Amazon, and Kroger will be affect COST. That really hasn't been the case in the past: Costco dominated its warehouse niche, Costco earnings and the Costco stock dividend grew accordingly and COST stock followed. External factors didn't really influence the stock. They will now - at least for the near future.
What to Do With COST Stock
Volatility isn't necessarily a bad thing, particularly for a long-term investor. And that volatility very well may provide an opportunity in Costco stock.
Fellow InvestorPlace columnist Tim Biggam argued recently for a bullish put spread in COST - an idea that makes some sense. With volatility higher, option prices have followed. Hedged positions - including just selling puts at a much lower strike price - can lower the entry point if COST stock takes another leg down. If it doesn't, premium income can replace the Costco stock dividend payment.
I'd like that strategy better than simply buying COST stock at the moment, because I do think more downside is going to come at some point. The 27 multiple is lower than the 30x+ Costco has typically delivered the past few years, but it's not exactly cheap either. And while I don't think margin pressure is going to lead Costco into bankruptcy, the margin concerns are real.
If pricing pressure drops Costco earnings growth to the mid- to high-single-digits, that earnings multiple likely compresses. In that scenario, COST could fall another 15-20% relatively easily, even assuming a still-healthy 22-24 multiple.
And for investors who believe in the long-term case for COST stock, the point is that there's likely to be another sell-off in the next few quarters. There's going to be a lot of news coming out of the space, a lot of data to digest. And there's going to be - possibly - some sort of correction in the broad market.
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Any of those events could bring Costco down further and provide a better entry point for the long-term investor.
In this way, too, the increased volatility in COST can create an opportunity - it just requires some patience.
As of this writing, Vince Martin has no positions in any securities mentioned.
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The post Costco Wholesale Corporation (COST) News Is Going to Stay Bumpy for a While appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More From InvestorPlace Twenty-First Century Fox Inc (FOXA) Outbid ESPN on the Worst Deal Ever Why Amazon.com, Inc. (AMZN) Stock Is Not Recession-Proof Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock Don't Bet on a Buyout of Twitter Inc (TWTR) Stock The post Costco Wholesale Corporation (COST) News Is Going to Stay Bumpy for a While appeared first on InvestorPlace . 7 Investments Every Retirement Investor Should Own First, Kroger Co (NYSE: KR ) cut its guidance , raising fears of deflation-fueled margin pressure across the grocery sector. The reason grocery stocks have fallen so much since June - KR is down about 30% for instance, as is smaller SUPERVALU Inc. (NYSE: SVU ) - is that margins are so narrow that pricing pressure has a major bottom-line impact.
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More From InvestorPlace Twenty-First Century Fox Inc (FOXA) Outbid ESPN on the Worst Deal Ever Why Amazon.com, Inc. (AMZN) Stock Is Not Recession-Proof Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock Don't Bet on a Buyout of Twitter Inc (TWTR) Stock The post Costco Wholesale Corporation (COST) News Is Going to Stay Bumpy for a While appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Over the past few months, Costco Wholesale Corporation (NASDAQ: COST ) shareholders have learned how the rest of the market lives. Costco news seemed continually positive, earnings rose steadily and dividends rose each year, with special dividends only adding to the good COST news.
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More From InvestorPlace Twenty-First Century Fox Inc (FOXA) Outbid ESPN on the Worst Deal Ever Why Amazon.com, Inc. (AMZN) Stock Is Not Recession-Proof Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock Don't Bet on a Buyout of Twitter Inc (TWTR) Stock The post Costco Wholesale Corporation (COST) News Is Going to Stay Bumpy for a While appeared first on InvestorPlace . The issue in the near term, then, is that Costco stock isn't just going to move on Costco news or Costco earnings. That really hasn't been the case in the past: Costco dominated its warehouse niche, Costco earnings and the Costco stock dividend grew accordingly and COST stock followed.
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More From InvestorPlace Twenty-First Century Fox Inc (FOXA) Outbid ESPN on the Worst Deal Ever Why Amazon.com, Inc. (AMZN) Stock Is Not Recession-Proof Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock Don't Bet on a Buyout of Twitter Inc (TWTR) Stock The post Costco Wholesale Corporation (COST) News Is Going to Stay Bumpy for a While appeared first on InvestorPlace . Impacts Beyond Costco News and Costco Earnings The biggest reason I expect choppy trading in COST going forward is that the grocery space, as a whole, has a lot of uncertainty. It's going to take some time for investors to sort out the impact of Amazon's entry into the space.
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e9c3f616-6983-4a78-a4ba-3921bfa5a770
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9755.0
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2017-10-12 00:00:00 UTC
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Applied Optoelectronics Plunges For Second Time On September Guide
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-plunges-second-time-september-guide-2017-10-12
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nan
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nan
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Shares in Applied Optoelectronics ( AAOI ) crashed for the second time in two months after the maker of optical-communications devices preannounced third-quarter earnings that missed consensus estimates by a mile.
Applied Optoelectronics plunged 15% to 49.80 in after-hours trading on the stock market today .
Applied Optoelectronics said it expects revenue of $88.5 million at the midpoint of its guidance and non-GAAP profit in a range of $1.04 to $1.09 a share. Analysts had projected revenue of $111.6 million, up 59% from a year earlier, and earnings of $1.31 a share, up from 38 cents a year earlier.
"Our preliminary results for the third quarter fell short of prior estimates and were negatively impacted by lower-than-expected sales to one of our large data-center customers. Despite this shortfall, we maintained a strong gross-margin profile in the quarter, and continued to experience solid demand with our other top data-center customers," Thompson Lin, Applied Optoelectronics' chief executive, said in a press release.
IBD'S TAKE:Applied Optoelectronics' shares fell Aug. 4 after reporting earnings and have steadily declined since. Shares are now below both the 50-day and 100-day moving averages and are close to their 200-day moving averages. Still, the stock is ranked first among companies in the Telecom-Fiber Optics group by IBD.
Applied Optoelectronics also plunged on Aug. 4 , a day after reporting second-quarter results and warning that third-quarter results would miss its earlier guidance.
At that time, Applied Optoelectronics forecast September-quarter revenue in a range of $107 million to $115 million and earnings of $1.36 a share.
While telecom companies have been the company's primary customers, Applied Optoelectronics has been getting a boost from new customers such as Amazon.com ( AMZN ), Microsoft ( MSFT ) and Facebook ( FB ). However, analysts say that the internet companies are partnering with contract manufacturers to produce custom-designed optical devices as well as lower-speed devices.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares in Applied Optoelectronics ( AAOI ) crashed for the second time in two months after the maker of optical-communications devices preannounced third-quarter earnings that missed consensus estimates by a mile. "Our preliminary results for the third quarter fell short of prior estimates and were negatively impacted by lower-than-expected sales to one of our large data-center customers. Despite this shortfall, we maintained a strong gross-margin profile in the quarter, and continued to experience solid demand with our other top data-center customers," Thompson Lin, Applied Optoelectronics' chief executive, said in a press release.
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Shares in Applied Optoelectronics ( AAOI ) crashed for the second time in two months after the maker of optical-communications devices preannounced third-quarter earnings that missed consensus estimates by a mile. IBD'S TAKE:Applied Optoelectronics' shares fell Aug. 4 after reporting earnings and have steadily declined since. At that time, Applied Optoelectronics forecast September-quarter revenue in a range of $107 million to $115 million and earnings of $1.36 a share.
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Shares in Applied Optoelectronics ( AAOI ) crashed for the second time in two months after the maker of optical-communications devices preannounced third-quarter earnings that missed consensus estimates by a mile. At that time, Applied Optoelectronics forecast September-quarter revenue in a range of $107 million to $115 million and earnings of $1.36 a share. While telecom companies have been the company's primary customers, Applied Optoelectronics has been getting a boost from new customers such as Amazon.com ( AMZN ), Microsoft ( MSFT ) and Facebook ( FB ).
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Shares in Applied Optoelectronics ( AAOI ) crashed for the second time in two months after the maker of optical-communications devices preannounced third-quarter earnings that missed consensus estimates by a mile. Still, the stock is ranked first among companies in the Telecom-Fiber Optics group by IBD. Applied Optoelectronics also plunged on Aug. 4 , a day after reporting second-quarter results and warning that third-quarter results would miss its earlier guidance.
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c6094ff7-2740-4472-a63c-02e53baf8cf8
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9756.0
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2017-10-12 00:00:00 UTC
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Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock
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AAOI
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https://www.nasdaq.com/articles/why-investors-are-wrong-about-applied-optoelectronics-inc-aaoi-stock-2017-10-12
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A couple of weeks ago, yours truly suggested it would be mostly pointless to sue Applied Optoelectronics Inc (NASDAQ: AAOI ) simply because of the sizeable and unexpected drop in the value of AAOI stock. Shares have fallen 38% since the AAOI earnings report from early August, which was better than expected, but also cautioned investors that a major customer - most likely Amazon.com, Inc. (NASDAQ: AMZN ) - was taking some of its business elsewhere.
Source: Shutterstock
I'm sticking to that argument.
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The odds of being compensated anything are slim enough, and the odds of your loss being fully offset are even slimmer. Though other owners of AAOI stock will most definitely follow through and participate in the class action suit, at least you can take some comfort in knowing you didn't needlessly add to Applied Optoelectronics' headache.
I'd like to move the discussion forward today, beyond the brewing lawsuit, and suggest to everyone that perhaps the best way to recoup your losses on your AAOI stock is simply to be patient and let the company do what it's already proven it can do very well.
Perspective Please
The short version of a long story (on the off chance anyone reading this doesn't already know about the damning AAOI news from early August): Applied Optoelectronics makes, among other things, optical transceivers - a piece of hardware that facilitates high-speed communications within a data center's servers. 40G transceivers were considered high-performance hardware a few years ago, but 100G transceivers have become the new standard. Problem is, Applied Optoelectronics didn't ramp up its capacity to supply 100G hardware fast enough, forcing Amazon (or so it is widely believed) to take at least the better part of its 100G business to another supplier . That "other supplier" is believed to be Fabrinet (NYSE: FN ).
It's a problem simply because sales of transceivers to Amazon is a significant piece of Applied Optoelectronics' pie. We don't know exactly how much, but we do know the loss of this business to Fabrinet forced AAOI to lower its revenue outlook for the current quarter to a range of $107 million to $115 million . Analysts were modeling a top line of $123 million for the third quarter of this year.
Calling a spade a spade, Applied Optoelectronics botched it. Part of remaining competitive is anticipating business needs and staying ahead of your competition. This company didn't do that, and one can't help but wonder of it's failed to do so on other technology fronts as well. Just for a little perspective though, the mid-point of the new Q3 guidance range is just 10% less than the analyst consensus, and the stock was at one point down more than 40% following the dire AAOI news.
The punishment doesn't fit the crime. In fact, the punishment far exceeds the crime. The end result is a stock that's now trading at a plausible forward-looking P/E ratio of only 10.8 .
Yes, there's risk involved. The "where there's smoke there's fire" adage applies to companies too. I'm willing to bet, however, this particular gaffe is one that Applied Optoelectronics doesn't stumble into again. I'm willing to bet the organization's top brass and engineers are doing everything conceivable to avoid dropping another bomb on AAOI stockholders like the one they had to drop on them a couple of months ago.
There's nothing better for a company's performance than a little fear.
Bottom Line on AAOI Stock
The irony is, even without the tacit, unintended message sent by Amazon to Applied Optoelectronics shareholders, the company was beefing up its capacity to produce 100G equipment anyway… albeit after its competitors did.
It wasn't going to be out of the market for long, though.
It's also crucial to understand that Applied Optoelectronics offers everything from transceivers to CATV equipment to analog diplexers to photodetectors and more. Its other goods are still plenty competitive. For whatever reason, though, traders took the 100G ball and ran with it, without fully realizing they didn't need to run that far. Here's a look at what analysts see for the company's fiscal future, which is still pretty impressive.
And just for the record, the company has had something of a history of topping expectations .
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Point being, you could certainly do a lot worse than owning AAOI. It's a far better bet than the class action lawsuit being prepped by disgruntled shareholders.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter .
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The post Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though other owners of AAOI stock will most definitely follow through and participate in the class action suit, at least you can take some comfort in knowing you didn't needlessly add to Applied Optoelectronics' headache. Perspective Please The short version of a long story (on the off chance anyone reading this doesn't already know about the damning AAOI news from early August): Applied Optoelectronics makes, among other things, optical transceivers - a piece of hardware that facilitates high-speed communications within a data center's servers. Bottom Line on AAOI Stock The irony is, even without the tacit, unintended message sent by Amazon to Applied Optoelectronics shareholders, the company was beefing up its capacity to produce 100G equipment anyway… albeit after its competitors did.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips A couple of weeks ago, yours truly suggested it would be mostly pointless to sue Applied Optoelectronics Inc (NASDAQ: AAOI ) simply because of the sizeable and unexpected drop in the value of AAOI stock. Perspective Please The short version of a long story (on the off chance anyone reading this doesn't already know about the damning AAOI news from early August): Applied Optoelectronics makes, among other things, optical transceivers - a piece of hardware that facilitates high-speed communications within a data center's servers. Shares have fallen 38% since the AAOI earnings report from early August, which was better than expected, but also cautioned investors that a major customer - most likely Amazon.com, Inc. (NASDAQ: AMZN ) - was taking some of its business elsewhere.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips A couple of weeks ago, yours truly suggested it would be mostly pointless to sue Applied Optoelectronics Inc (NASDAQ: AAOI ) simply because of the sizeable and unexpected drop in the value of AAOI stock. Though other owners of AAOI stock will most definitely follow through and participate in the class action suit, at least you can take some comfort in knowing you didn't needlessly add to Applied Optoelectronics' headache. More From InvestorPlace Don't Bet on a Buyout of Twitter Inc (TWTR) Stock Square Inc (SQ) Stock Will Shoot Even Higher Very Soon Facebook Inc (FB) Stock and the Trials of Mark Zuckerberg The post Why Investors Are Wrong About Applied Optoelectronics Inc (AAOI) Stock appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips A couple of weeks ago, yours truly suggested it would be mostly pointless to sue Applied Optoelectronics Inc (NASDAQ: AAOI ) simply because of the sizeable and unexpected drop in the value of AAOI stock. Shares have fallen 38% since the AAOI earnings report from early August, which was better than expected, but also cautioned investors that a major customer - most likely Amazon.com, Inc. (NASDAQ: AMZN ) - was taking some of its business elsewhere. Though other owners of AAOI stock will most definitely follow through and participate in the class action suit, at least you can take some comfort in knowing you didn't needlessly add to Applied Optoelectronics' headache.
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9f6e4fc0-3887-4fd7-992f-9bc47991e6d6
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9757.0
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2017-10-11 00:00:00 UTC
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Why Applied Optoelectronics Inc (AAOI) Stock Can Make a Comeback
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-inc-aaoi-stock-can-make-a-comeback-2017-10-11
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) is a classic case of a hyper growth company that hits the wall. During August, the company reported disappointing earnings, with the guidance calling for a 5% drop in revenues for Q3. By comparison, the prior quarter saw a 112% spike on the top-line and a 22% quarter-over-quarter ramp!
Source: Shutterstock
As a result, AAOI stock plunged on the news, dropping by more than a third. Since then things haven't gotten much better. Yet this is not surprising. It can take some time for a stock market darling to get back on track.
OK, then what should investors do with AAOI stock? Well, if you have a long-term approach, the shares do look interesting.
So here's a backgrounder on the company: Founded over 20 years ago, AAOI is a top provider of fiber-optic networking systems that are focused on growth markets like cable television broadband (CATV), fiber-to-the-home (FTTH) and data centers. A unique part of the company's technology is something called the Molecular Beam Epitaxy (MBE) fabrication process, which has allowed for high-performance systems. This is something that has attracted top-notch customers like Amazon.com, Inc. (NASDAQ: AMZN ), Microsoft Corporation (NASDAQ: MSFT ) and B aidu Inc (ADR) (NASDAQ: BIDU ).
So then why is AAOI having problems? There are actually multiple issues at work. First of all, AAOI has faced headwinds in the Chinese market. Granted, AAOI does not have heavy exposure. But even a small deceleration can make a high-growth company stumble.
Another problem for AAOI stock has been that the company is undergoing a transition in its product line, from 40G to 100G systems. This has been challenging since the sales cycles are long in the industry. It also does not help that the slowdown has been worse than expected for 40G systems.
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And finally, AAOI has reliance on a handful of customers. According to the latest SEC filing, about 97% of revenues come from only ten customers. In fact, AMZN's share is roughly 55% and MSFT's is at 18%.
In light of this, it is understandable that Wall Street has gotten spooked with AAOI stock because of the buzz that AMZN is looking to shift some of its business to alternative vendors.
No Need To Panic About AAOI Stock
While AAOI must deal with some tough problems, there are still silver linings. For example, the transition from 40G to 100G systems is a testament to the company's ongoing innovation of the product line.
More important, the 100G offerings are likely to see long-term growth because of the heavy demand for hyperscale cloud buildouts. It is also important to note that this technology has higher margins?
Then what about the issues with AMZN? Yes, this is serious. But then again, the company probably wants to diversify its vendor base-and is also likely angling to get better pricing, especially given its size.
For instance, Cowen & Co. Paul Silverstein believes that the concerns regarding AMZN are exaggerated, saying that there is "meaningful upside to both AAOI's operating model and shares."
Bottom Line On AAOI
AAOI news has certainly been mostly bearish lately. But this could really be setting up a nice entry point. Keep in mind that the valuation is actually downright cheap, with the forward price-to-earnings multiple at 10.6X. This is on par with old-line companies like Ford Motor Company (NYSE: F )!
Now again, AAOI stock will probably not have quick snap back. But for those investors who are willing to wait, there could be a nice move to the upside as the valuation multiple returns to more normal levels.
Tom Taulli runs the InvestorPlace blog IPO Playbook and is also the author of High-Profit IPO Strategies , All About Commodities and All About Short Selling . Follow him on Twitter at @ttaulli . As of this writing, he did not hold a position in any of the aforementioned securities.
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The post Why Applied Optoelectronics Inc (AAOI) Stock Can Make a Comeback appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So here's a backgrounder on the company: Founded over 20 years ago, AAOI is a top provider of fiber-optic networking systems that are focused on growth markets like cable television broadband (CATV), fiber-to-the-home (FTTH) and data centers. For instance, Cowen & Co. Paul Silverstein believes that the concerns regarding AMZN are exaggerated, saying that there is "meaningful upside to both AAOI's operating model and shares." InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is a classic case of a hyper growth company that hits the wall.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is a classic case of a hyper growth company that hits the wall. More from InvestorPlace The 10 Best Stocks to Buy Right Now for 2018 5 Giant-Slaying Small-Cap Stocks to Buy 3 Gold Stocks Ready to Run The post Why Applied Optoelectronics Inc (AAOI) Stock Can Make a Comeback appeared first on InvestorPlace . Source: Shutterstock As a result, AAOI stock plunged on the news, dropping by more than a third.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is a classic case of a hyper growth company that hits the wall. Another problem for AAOI stock has been that the company is undergoing a transition in its product line, from 40G to 100G systems. More from InvestorPlace The 10 Best Stocks to Buy Right Now for 2018 5 Giant-Slaying Small-Cap Stocks to Buy 3 Gold Stocks Ready to Run The post Why Applied Optoelectronics Inc (AAOI) Stock Can Make a Comeback appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) is a classic case of a hyper growth company that hits the wall. OK, then what should investors do with AAOI stock? Another problem for AAOI stock has been that the company is undergoing a transition in its product line, from 40G to 100G systems.
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583643bb-8f3c-45f5-ad1c-e214c781095c
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9758.0
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2017-10-06 00:00:00 UTC
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Can Applied Optoelectronics Inc (AAOI) Stock Regain Its Lofty Price?
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AAOI
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https://www.nasdaq.com/articles/can-applied-optoelectronics-inc-aaoi-stock-regain-its-lofty-price-2017-10-06
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) was one of 2017's brightest stars. AAOI stock shot up from $20 at the start of the year, to more than $100 a share. Now it's halved that gain.
Source: Shutterstock
I last wrote about AAOI prior to last quarter's earnings. Unfortunately, the bearish points I noted have since played out; Since that earnings report in early August, AAOI stock has lost a stunning 43% of its value. Shares are sliding again this week, with a strong selling wave pounding AAOI back to the mid $50s now. Is this huge decline a buying opportunity, or is it time to throw in the towel here?
AAOI Stock Cons
China Market Still Slow : The optical equipment sector trades heavily based on Chinese demand. While AAOI is far from the most-exposed player to China specifically, investors tend to dump the whole sector on weakness.
The slump in Chinese optical demand, alas, shows no sign of letting up. Thursday brought the latest blow, with NeoPhotonics Corp (NYSE: NPTN ) firing workers, presumably due to weak Chinese demand. NPTN stock got crushed on the day, slumping more than 15%. AAOI, along with other rivals including Lumentum Holdings Inc (NASDAQ: LITE ) and Acacia Communications, Inc. (NASDAQ: ACIA ) declined in sympathy.
Bad Guidance : Applied Optoelectronics' Q2 results weren't bad at all on the surface. Revenue showed more than 100% year-over-year growth. Both EPS and revenues beat analyst estimates by comfortable amounts.
However, the company admitted that the growth picture is going to be a bit rocky. They guided Q3 revenue to between $107 million to $115 million, way short of analysts' $123 million consensus estimate. The company is transitioning from 40G demand to 100G, but it won't be able to reposition itself in time to keep its torrid revenue growth streak intact. The company expects a better Q4, however the market will demand results now, given the uncertainty since the Q3 guidance cut came out of the blue.
Sector Is Prone To Boom/Bust Cycle : Optical equipment sector stocks are incredibly volatile. There have been countless times over the years where a company or two have a hot product. They ride it for a few quarters, and earnings appear to have limitless potential.
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But then competitors emerge, or technology moves on to some newer faster design. It's difficult for AAOI, or any of its peers, to carve out a sustainable technological advantage. AAOI stock bulls can rightfully say that the company is printing money now. But how long will the good times last? Already, that messy transition to 100G technology has shown weakness in Applied Optoelectronics' competitive position.
AAOI Stock Pros
Sentiment Can Swing Quickly : As the earnings beatdown showed, investors in AAOI stock will make huge changes in their positioning based on small differences in outlook. It wasn't a good earnings report, sure, but usually, you won't see the market take a stock down more than 40% in a quarter following a stinker either.
The positive side of this is that AAOI stock could shoot right back up to $100 if they hit next quarter and re-establish credibility in their growth story. And unlike many high-fliers, this stock looks quite cheap. AAOI sells at just 14x trailing and 11x forward earnings. Obviously, bears have their reasons for doubting AAOI earnings. But if management can successfully get the growth rolling again, the stock could nearly double off current levels and still sell under 20x forward earnings.
Big Short Position : Now, it's worth stating at the outset that big short positions are often a warning sign for a stock. Many times, short sellers have good insight into a situation. However, when they gravitate to a stock in excessive numbers, it often leads to powerful short squeezes.
The fuse is lit for AAOI stock. Short interest in AAOI stock swelled to more than 10 million shares (at its peak, a $1 billion bet against AAOI) earlier this summer. Keep in mind that AAOI has fewer than 20 million shares outstanding; 10 million of them selling short is an amazing amount. And it's getting even more extreme now. In the wake of the earnings report, short interest dipped slightly, however the bears are back. The latest report now shows more than 13 million shares sold short - that's more than two-thirds of the float. A strong earnings report would catch the AAOI bears in a very bad place.
Finisar Positive Sign : AAOI rival Finisar Corporation (NASDAQ: FNSR ) reported spotty results last month. However, they indicated that in AAOI's key 40-gigs market, things are going alright.
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Finisar's CFO Kurt Adzema said on their conference call that: "40 Gig was relatively stable last quarter and I would say the expectation is that it will be relatively stable this coming quarter as well." If that stability holds and carries over to AAOI's demand in that space, it'd be great news.
That'd also be a big difference from analyst's expectations. Needham & Company, for example, was modeling a 10% decline in 40G pricing. If you're looking for a catalyst that would cause AAOI stock to beat expectations this quarter, this is a good one.
Verdict on AAOI Stock
AAOI stock has gotten smashed since its last earnings report. There's good reason to think the market has punished it excessively in fact. With a huge short position, it wouldn't take much for the stock to shoot back up.
That said, exercise caution, and certainly don't bet big on the earnings report. The company has lost credibility with its growth story. If they miss again, for whatever reason, the downside could be significant. And in the longer-run, it's far from certain that AAOI has a lasting technological edge to support more record-breaking profits beyond the next few quarters.
At the time of this writing, the author held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek.
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The post Can Applied Optoelectronics Inc (AAOI) Stock Regain Its Lofty Price? appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAOI Stock Cons China Market Still Slow : The optical equipment sector trades heavily based on Chinese demand. The positive side of this is that AAOI stock could shoot right back up to $100 if they hit next quarter and re-establish credibility in their growth story. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) was one of 2017's brightest stars.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) was one of 2017's brightest stars. AAOI Stock Cons China Market Still Slow : The optical equipment sector trades heavily based on Chinese demand. Finisar Positive Sign : AAOI rival Finisar Corporation (NASDAQ: FNSR ) reported spotty results last month.
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AAOI Stock Pros Sentiment Can Swing Quickly : As the earnings beatdown showed, investors in AAOI stock will make huge changes in their positioning based on small differences in outlook. Verdict on AAOI Stock AAOI stock has gotten smashed since its last earnings report. Top 10 Best Stocks to Buy in the S&P 500 Through Q3 7 Non-Bank Financial Stocks to Buy Now The post Can Applied Optoelectronics Inc (AAOI) Stock Regain Its Lofty Price?
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If you're looking for a catalyst that would cause AAOI stock to beat expectations this quarter, this is a good one. Verdict on AAOI Stock AAOI stock has gotten smashed since its last earnings report. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) was one of 2017's brightest stars.
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2017-10-06 00:00:00 UTC
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Buy Applied Optoelectronics (AAOI) Stock at These Discounted Prices
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AAOI
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https://www.nasdaq.com/articles/buy-applied-optoelectronics-aaoi-stock-at-these-discounted-prices-2017-10-06
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Applied Optoelectronics Inc (NASDAQ: AAOI ) used to be one of the best growth stories on Wall Street. But in early August, AAOI stock went from growth darling to ugly duckling overnight after an ugly earnings report showed weakness in the underlying growth story.
Source: Shutterstock
AAOI stock lost about a third of its value in a day. Since then, every rally in AAOI stock has been faded and the stock appears to be in a solid downtrend.
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But does that mean you should give up on this hyper-growth name?
I don't think so. Although the stock may be due for some turbulence in the near-term, AAOI is a materially undervalued stock with significant long-term upside from these depressed levels.
Why AAOI Dropped Big
AAOI makes parts for hyperscale data center operators like Amazon.com, Inc. (NASDAQ: AMZN ), Microsoft Corporation (NASDAQ: MSFT ), Alibaba Group Holding Ltd (NASDAQ: BABA ), and Baidu Inc (ADR) (NASDAQ: BIDU ).
In this sense, investors looked at AAOI as a play purely on the hyperscale data center growth trend. As more data migrated to the cloud, the more companies like Amazon and Microsoft would be forced to enhance and build-out their hyperscale data centers. The more those tech giants are forced to do that, the more business AAOI generates.
This is why AAOI stock was up 300% year-to-date ahead of its second quarter earnings report.
But that report had a number of red flags, the biggest being that the company had hit pause on the secular growth story. For multiple quarters, AAOI had demonstrated positive sequential revenue growth. Simply put, each quarter's revenues were bigger than the prior quarter's revenues. This trend illustrated that the business had tremendous ramp, regardless of seasonality.
The third quarter guide called for that trend to end. Revenues are supposed to be down about 5% next quarter.
So, what's going on the under hood? Two things. One, the 40G market is slowing down more than initially anticipated. Two, AAOI is a victim of heavy single-customer reliance.
On the first point, the optical market is experiencing a massive shift from lower data rate (40G) to higher data rate (100G) equipment. This shift has been underway for some time, but AAOI has continued to post positive revenue growth because 100G ramp has consistently offset 40G churn. The guide implies that this will reverse in the third quarter and that 40G slowdown will more than offset 100G ramp.
On the second point, the acceleration in 40G slowdown is a result of AAOI losing sales from one major customer (although not mentioned specifically, all signs point to Amazon). This underscored that AAOI is heavily dependent on a few major customers. Therefore, any slack in demand from those major customers will have huge negative repercussions on operating results.
For those two reasons, AAOI stock dropped big.
Why AAOI Stock Will Rebound
Both of those headwinds are near-term in nature.
The higher the date rate, the more differentiated AAOI is from competitors. From this vantage point, less 40G demand and more 100G demand is a favorable long-term dynamic for the company. Granted, right now, the 40G slowdown is weighing on operations, but, longer term, 100G demand ramp implies more market share gains for AAOI. Plus, 100G carries higher gross margins than 40G, so the shift from 40G to 100G implies a boost to AAOI margins.
Its also worth talking about the forthcoming demand ramp at even higher data rates like 200G and 400G.
Because hyperscale data centers are growing so quickly and harvesting so much data, demand for higher and higher data rates will almost assuredly grow. This is why, last quarter, AAOI announced 14 new active qualification efforts for their 100G and 200G technologies with customers outside of the core hyperscale customer base.
In the long-term, then, AAOI is looking at significantly higher margins on a significantly larger revenue base.
Bottom Line on AAOI Stock
Near-term pain is weighing on the stock. The latest wave of data (the second quarter earnings report) wasn't great. Until we get new, positive data, this stock is likely stuck in neutral.
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But 100G and 200G demand ramp is so strong that this positive data will likely come soon. I'm looking at the third quarter earnings report. That report has the potential to hit "play" on the secular growth story, resume the sequential revenue growth trend and send the stock significantly higher.
In the meantime, I think its worth accumulating AAOI stock before that report hits the tape.
As of this writing, Luke Lango was long AAOI, AMZN, BABA, and BIDU.
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The post Buy Applied Optoelectronics (AAOI) Stock at These Discounted Prices appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This shift has been underway for some time, but AAOI has continued to post positive revenue growth because 100G ramp has consistently offset 40G churn. Granted, right now, the 40G slowdown is weighing on operations, but, longer term, 100G demand ramp implies more market share gains for AAOI. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) used to be one of the best growth stories on Wall Street.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) used to be one of the best growth stories on Wall Street. Why AAOI Dropped Big AAOI makes parts for hyperscale data center operators like Amazon.com, Inc. (NASDAQ: AMZN ), Microsoft Corporation (NASDAQ: MSFT ), Alibaba Group Holding Ltd (NASDAQ: BABA ), and Baidu Inc (ADR) (NASDAQ: BIDU ). But in early August, AAOI stock went from growth darling to ugly duckling overnight after an ugly earnings report showed weakness in the underlying growth story.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) used to be one of the best growth stories on Wall Street. Why AAOI Dropped Big AAOI makes parts for hyperscale data center operators like Amazon.com, Inc. (NASDAQ: AMZN ), Microsoft Corporation (NASDAQ: MSFT ), Alibaba Group Holding Ltd (NASDAQ: BABA ), and Baidu Inc (ADR) (NASDAQ: BIDU ). More From InvestorPlace Gradual Price Hikes Are a Big Deal for Netflix (NFLX) Stock Shopify Stock Will Plunge Almost 50% Says Prominent Short-Seller 'Fearless Girl' Firm Fined for Underpaying Females How Amazon.com, Inc (AMZN) Stock Can See $1,000 Again The post Buy Applied Optoelectronics (AAOI) Stock at These Discounted Prices appeared first on InvestorPlace .
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Why AAOI Dropped Big AAOI makes parts for hyperscale data center operators like Amazon.com, Inc. (NASDAQ: AMZN ), Microsoft Corporation (NASDAQ: MSFT ), Alibaba Group Holding Ltd (NASDAQ: BABA ), and Baidu Inc (ADR) (NASDAQ: BIDU ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Applied Optoelectronics Inc (NASDAQ: AAOI ) used to be one of the best growth stories on Wall Street. But in early August, AAOI stock went from growth darling to ugly duckling overnight after an ugly earnings report showed weakness in the underlying growth story.
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2017-10-05 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAOI, CVX, NXTM
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AAOI
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-aaoi-cvx-nxtm-2017-10-05
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 9,993 contracts have traded so far, representing approximately 999,300 underlying shares. That amounts to about 41.3% of AAOI's average daily trading volume over the past month of 2.4 million shares. Particularly high volume was seen for the $60 strike call option expiring October 06, 2017 , with 344 contracts trading so far today, representing approximately 34,400 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $60 strike highlighted in orange:
Chevron Corporation (Symbol: CVX) options are showing a volume of 21,341 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 41.2% of CVX's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $117 strike call option expiring October 20, 2017 , with 5,095 contracts trading so far today, representing approximately 509,500 underlying shares of CVX. Below is a chart showing CVX's trailing twelve month trading history, with the $117 strike highlighted in orange:
And NxStage Medical Inc (Symbol: NXTM) saw options trading volume of 3,133 contracts, representing approximately 313,300 underlying shares or approximately 41.1% of NXTM's average daily trading volume over the past month, of 762,960 shares. Particularly high volume was seen for the $30 strike call option expiring March 16, 2018 , with 3,013 contracts trading so far today, representing approximately 301,300 underlying shares of NXTM. Below is a chart showing NXTM's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for AAOI options , CVX options , or NXTM options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $60 strike call option expiring October 06, 2017 , with 344 contracts trading so far today, representing approximately 34,400 underlying shares of AAOI. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 9,993 contracts have traded so far, representing approximately 999,300 underlying shares. That amounts to about 41.3% of AAOI's average daily trading volume over the past month of 2.4 million shares.
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Particularly high volume was seen for the $60 strike call option expiring October 06, 2017 , with 344 contracts trading so far today, representing approximately 34,400 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $60 strike highlighted in orange: Chevron Corporation (Symbol: CVX) options are showing a volume of 21,341 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 9,993 contracts have traded so far, representing approximately 999,300 underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 9,993 contracts have traded so far, representing approximately 999,300 underlying shares. Particularly high volume was seen for the $60 strike call option expiring October 06, 2017 , with 344 contracts trading so far today, representing approximately 34,400 underlying shares of AAOI. That amounts to about 41.3% of AAOI's average daily trading volume over the past month of 2.4 million shares.
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Below is a chart showing NXTM's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for AAOI options , CVX options , or NXTM options , visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Applied Optoelectronics Inc (Symbol: AAOI), where a total of 9,993 contracts have traded so far, representing approximately 999,300 underlying shares. That amounts to about 41.3% of AAOI's average daily trading volume over the past month of 2.4 million shares.
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2017-10-04 00:00:00 UTC
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Options Traders Expect Huge Moves in Applied Optoelectronics, Inc. (AAOI) Stock
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AAOI
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https://www.nasdaq.com/articles/options-traders-expect-huge-moves-in-applied-optoelectronics-inc.-aaoi-stock-2017-10-04
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nan
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nan
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Investors in Applied Optoelectronics, Inc. AAOI need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 17 th 2017 $40 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Applied Optoelectronics, but what is the fundamental picture for the company? Currently, Applied Optoelectronics is a Zacks Rank #3 (Hold) in the Electronics - Semiconductors industry that ranks in the Top 37% of our Zacks Industry Rank. Over the last 60 days, the current year Zacks Consensus Estimate has seen three upward versus no downward revision. The net effect has been taken by the Zacks Consensus Estimate going to $5.36 from $5.31 in that period.
Given the way analysts feel about Applied Optoelectronics right now, this huge implied volatility could mean there's a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLXearnings report completely free. See it here: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Applied Optoelectronics, Inc. AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Applied Optoelectronics, Inc. AAOI need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Applied Optoelectronics, Inc. AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Applied Optoelectronics, Inc. AAOI need to pay close attention to the stock based on moves in the options market lately. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Given the way analysts feel about Applied Optoelectronics right now, this huge implied volatility could mean there's a trade developing.
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9762.0
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2017-10-02 00:00:00 UTC
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Mad About Your Loss in Applied Optoelectronics (AAOI) Stock? Don’t Sue!
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AAOI
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https://www.nasdaq.com/articles/mad-about-your-loss-in-applied-optoelectronics-aaoi-stock-dont-sue-2017-10-02
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you own or have been watching Applied Optoelectronics Inc (NASDAQ: AAOI ) for any length of time, then you almost certainly already know AAOI stock took a 34% tumble in early August. Though the second quarter results released on Aug. 3 were impressive, its third quarter guidance spooked the market - and then some.
The story? A major buyer of its fiberoptic networking equipment - Amazon.com, Inc. (NASDAQ: AMZN ) - is no longer using Applied Optoelectronics' hardware. Rather, this huge customer will be seeking an alternative solution as it continues to expand its server warehousing footprint.
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The stock-punishing fear more or less makes sense. A wide swath of revenue, and therefore earnings, is going away. The ensuing lawsuits, superficially anyway, make a little sense. Applied Optoelectronics' management should have given owners of AAOI stock a little more warning, or at least fully disclosed the potential risks.
Not Worth the Trouble
You can't throw a rock and not hit an attorney who isn't somehow latching onto the developing lawsuit. The Law Offices of Vincent Wong is the most recent arrival to the party, announcing on Friday it would be happy to represent Applied Optoelectronics shareholders who felt wronged by the company's management. Wong's public notice reads like all the others (in almost boilerplate fashion):
"the Company issued materially false and misleading statements and/or failed to disclose that: (1) a major customer was reducing its purchases of the Company's 40G receivers; (2) the loss of this major customer's business would have a severe negative impact on the Company's financial performance; and (3) as a result, the Company's public statements were materially false and misleading at all relevant times."
To some holders of AAOI stock, this might seem like a reasonable option. However, the track record - in terms of actually reimbursing investors for their losses - of stock-drop suits is rather dismal.
Take, for instance, the 2009 class action lawsuit levied by Bank of America Corp (NYSE: BAC ) stockholders against the bank itself after shares tanked in the wake of the subprime crisis. Of the $50 billion worth of market cap BofA lost at the time, the class action suit was only awarded $5 billion in restitution. Once all the attorney's fees were paid, shareholders were only able to divvy up $2.4 billion among themselves - less than five cents for each dollar investors lost.
And, sadly, that's a pretty typical outcome for most investor class action lawsuits.
Uh, Applied Optoelectronics Did Warn Investors
Be that as it may, while most stock-drop lawsuits don't really help a lot, this particular one may be an especially fruitless non-starter.
The call for a class action suit is predicated on the notion that the company's management failed to warn shareholders that Amazon was likely to look at other suppliers. And that, if Amazon did indeed select another supplier, it could have a surprising and unexpected adverse impact on Applied Optoelectronics' top and bottom lines.
But there's a problem: Applied Optoelectronics did caution investors of this possibility.
It may only be a technicality, but it's a very important technicality from a judge and jury's point of view. That is, in all of the recent quarterly filings with the SEC, the company made it clear :
"We generate much of our revenue from a limited number of customers. In 2016, 2015 and 2014 and the three months ended March 31, 2017, our top ten customers represented 95.5%, 88.7%, 87.2% and 96.7% of our revenue, respectively. In 2016, Amazon represented 54.6% of our revenue and Microsoft represented 18.3% of our revenue. As a result, the loss of, or a significant reduction in orders from any of our key customers would materially and adversely affect our revenue and results of operations. We typically do not have long-term contracts with our customers and instead rely on recurring purchase orders. If our key customers do not continue to purchase our existing products or fail to purchase additional products from us, our revenue would decline and our results of operations would be adversely affected."
As nice as it would have been to get some sort of heads-up warning from the company about Amazon dropping its 40G hardware, Applied Optoelectronics has no particular obligation to explain the risks unique to its operation. This particular flavor of risk is understood to be one that all investors take on when they invest in any company.
So, what are the attorneys doing then?
It's still a low-cost, high-potential payday for litigators, who often ensure they set themselves up for a paycheck first, whether or not investors receive a penny.
Bottom Line for AAOI Stock
Sue if you want to, just don't expect much in return. And, if you happen to still be hanging on to your stake in AAOI stock, bear in mind that every penny you make them cough up is a penny you take right off the company's bottom line, plus all the attorney's fees
Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value
Of course, even if you decide not to bother with the losing proposition, enough investors and lawyers will do it anyway. You can at least take some comfort in knowing you didn't participate in a pointless exercise.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter .
The post Mad About Your Loss in Applied Optoelectronics (AAOI) Stock? Don't Sue! appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you own or have been watching Applied Optoelectronics Inc (NASDAQ: AAOI ) for any length of time, then you almost certainly already know AAOI stock took a 34% tumble in early August. Applied Optoelectronics' management should have given owners of AAOI stock a little more warning, or at least fully disclosed the potential risks. To some holders of AAOI stock, this might seem like a reasonable option.
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And, if you happen to still be hanging on to your stake in AAOI stock, bear in mind that every penny you make them cough up is a penny you take right off the company's bottom line, plus all the attorney's fees Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value Of course, even if you decide not to bother with the losing proposition, enough investors and lawyers will do it anyway. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you own or have been watching Applied Optoelectronics Inc (NASDAQ: AAOI ) for any length of time, then you almost certainly already know AAOI stock took a 34% tumble in early August. Applied Optoelectronics' management should have given owners of AAOI stock a little more warning, or at least fully disclosed the potential risks.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you own or have been watching Applied Optoelectronics Inc (NASDAQ: AAOI ) for any length of time, then you almost certainly already know AAOI stock took a 34% tumble in early August. And, if you happen to still be hanging on to your stake in AAOI stock, bear in mind that every penny you make them cough up is a penny you take right off the company's bottom line, plus all the attorney's fees Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value Of course, even if you decide not to bother with the losing proposition, enough investors and lawyers will do it anyway. Applied Optoelectronics' management should have given owners of AAOI stock a little more warning, or at least fully disclosed the potential risks.
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Applied Optoelectronics' management should have given owners of AAOI stock a little more warning, or at least fully disclosed the potential risks. And, if you happen to still be hanging on to your stake in AAOI stock, bear in mind that every penny you make them cough up is a penny you take right off the company's bottom line, plus all the attorney's fees Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value Of course, even if you decide not to bother with the losing proposition, enough investors and lawyers will do it anyway. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you own or have been watching Applied Optoelectronics Inc (NASDAQ: AAOI ) for any length of time, then you almost certainly already know AAOI stock took a 34% tumble in early August.
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a001b1de-53ea-46a2-a7d0-782e126f39b6
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9763.0
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2017-09-29 00:00:00 UTC
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Talend SA ADR (TLND) Stock: One Way To Invest in the Internet of Things
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AAOI
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https://www.nasdaq.com/articles/talend-sa-adr-tlnd-stock%3A-one-way-to-invest-in-the-internet-of-things-2017-09-29
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Internet of Things segment - IoT for short - has been getting a lot of attention lately. It certainly helps that there has been much progress in technologies like cloud computing, AI (Artificial Intelligence), sensors and mobile devices.
Source: Shutterstock
For the most part, the Internet of Things is about the networking of physical systems - such things vehicles, homes, aircraft and manufacturing plants - to allow for improved performance, monitoring, security and lower costs.
And yes, the market is massive - and is likely to grow at a strong pace. Boston Consulting Group predicts spending on IoT is expected to hit a whopping $267 billion by 2020 .
As should be no surprise, Wall Street has been capitalizing on this opportunity, exemplified by a variety of exchange-traded funds, including Global X Internet of Things ETF (NASDAQ: SNSR ).
Yet there is a nagging issue - that is, there are not many pure-plays with IoT. The fact is that most publicly traded operators in this industry have diverse business operations; General Electric Company (NYSE: GE ) and Cisco Systems, Inc. (NASDAQ: CSCO ) come to mind. This tends to dilute the impact of the growth on a portfolio.
So what's an investor to do? Well, one option is to consider the IPO market, which is focused on emerging tech companies. And the good news is that we've seen several companies come public that should benefit nicely from the IoT megatrend.
One that stands out is Talend SA ADR (NASDAQ: TLND ). The company, which got its start in 2005, has leveraged core open source software into a platform that processes huge volumes of data in real time. The technology is also very flexible, as it can handle traditional big data environments as well as cloud infrastructures from Amazon.com, Inc. (NASDAQ: AMZN ), Alphabet Inc (NASDAQ: GOOGL ) and Microsoft Corporation (NASDAQ: MSFT ).
7 Stocks to Sell Before the Crash - And Tesla is #1!
The bottom line: Talend helps companies get a unified view of their business operations and customers across the organization. Just some of the benefits include improved customer support, fraud detection and predictions for equipment maintenance. The company describes itself this way: "We are a key enabler of the data-driven enterprise where data is becoming a strategic asset."
Oh, and TLND stock is up almost 60% since its IPO in August 2016.
OK, as for the Internet of Things, the company's technology has also proven adept at making connections with back-end systems and analytics apps. After all, Gartner points out that this is one of the top three technical challenges. This is due to the wide array of protocols and formats that needs to effectively mesh with the huge volumes of data. Actually, Gartner forecasts that roughly half of the costs of an IoT implementation will be on data integration.
A powerful case study of Talend's technology actually involves GE's Water & Power Business. Even though the company had been collecting data from the systems - such as for maintenance and replacements - GE knew that more could be done. So by using Talend, the company was able to process a terabyte a data in day from each turbine. As a result, the cost savings have been significant, coming to $2 to $5 million per turbine per year.
Takeaway On TLND Stock
Given the strength of Talend's technology, the company has been able to build a roster of marquee customers for IoT-related opportunities, including Air France KLM SA (ADR) (OTCMKTS: AFLYY ) and M2oCity, an independent telecom operator for smart metering and the smart city operations.
Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value
But the technology is also critical to other growth areas like mobile apps, wearables and cloud systems. The result is that growth has been standout. During the latest quarter, revenues jumped by 41% to $35.8 million and the company posted positive operating cash flows of $1.9 million. In light of this, TLND stock has seen nice gains since coming public in the summer of 2016.
And there is certainly much runway ahead. Based on estimates from the S-1, Talend's addressable market is roughly $17 billion - and the category is generally served by legacy operators that have aging technologies.
Tom Taulli runs the InvestorPlace blog IPO Playbook and is also the author of High-Profit IPO Strategies , All About Commodities and All About Short Selling . Follow him on Twitter at @ttaulli . As of this writing, he did not hold a position in any of the aforementioned securities.
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The post Talend SA ADR (TLND) Stock: One Way To Invest in the Internet of Things appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value But the technology is also critical to other growth areas like mobile apps, wearables and cloud systems. As should be no surprise, Wall Street has been capitalizing on this opportunity, exemplified by a variety of exchange-traded funds, including Global X Internet of Things ETF (NASDAQ: SNSR ). Based on estimates from the S-1, Talend's addressable market is roughly $17 billion - and the category is generally served by legacy operators that have aging technologies.
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Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value But the technology is also critical to other growth areas like mobile apps, wearables and cloud systems. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Internet of Things segment - IoT for short - has been getting a lot of attention lately. One that stands out is Talend SA ADR (NASDAQ: TLND ).
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Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value But the technology is also critical to other growth areas like mobile apps, wearables and cloud systems. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Internet of Things segment - IoT for short - has been getting a lot of attention lately. Takeaway On TLND Stock Given the strength of Talend's technology, the company has been able to build a roster of marquee customers for IoT-related opportunities, including Air France KLM SA (ADR) (OTCMKTS: AFLYY ) and M2oCity, an independent telecom operator for smart metering and the smart city operations.
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Applied Optoelectronics Inc (AAOI) Stock Still a Tremendous Value But the technology is also critical to other growth areas like mobile apps, wearables and cloud systems. The fact is that most publicly traded operators in this industry have diverse business operations; General Electric Company (NYSE: GE ) and Cisco Systems, Inc. (NASDAQ: CSCO ) come to mind. The bottom line: Talend helps companies get a unified view of their business operations and customers across the organization.
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aa52c591-2fec-4402-8e51-13686a6ea684
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9764.0
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2017-09-29 00:00:00 UTC
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Stocks Showing Improved Relative Strength: Lumentum
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AAOI
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https://www.nasdaq.com/articles/stocks-showing-improved-relative-strength-lumentum-2017-09-29
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nan
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nan
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The Relative Strength ( RS ) Rating for Lumentum ( LITE ) headed into a higher percentile Friday, as it got a lift from 69 to 75.
[ibd-display-video id=449423 width=50 float=left autostart=true] IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
History reveals that the best-performing stocks tend to have an RS Rating of over 80 in the early stages of their moves. See if Lumentum can continue to show renewed price strength and clear that threshold.
Looking For Winning Stocks? Try This Simple Routine
Lumentum is building a consolidation with a 68.73 buy point . See if it can clear the breakout price in heavy trade.
Lumentum reported negative growth for both the top and bottom lines last quarter. The company is expected to report its next quarterly numbers on or around Oct. 27.
Lumentum earns the No. 3 rank among its peers in the Telecom-Fiber Optics industry group. Applied Optoelectronics ( AAOI ) is the top-ranked stock within the group.
RELATED:
Which Stocks Are Showing Rising Relative Strength?
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics ( AAOI ) is the top-ranked stock within the group. The Relative Strength ( RS ) Rating for Lumentum ( LITE ) headed into a higher percentile Friday, as it got a lift from 69 to 75. [ibd-display-video id=449423 width=50 float=left autostart=true] IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score.
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Applied Optoelectronics ( AAOI ) is the top-ranked stock within the group. The Relative Strength ( RS ) Rating for Lumentum ( LITE ) headed into a higher percentile Friday, as it got a lift from 69 to 75. Why Should You Use IBD's Relative Strength Rating?
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Applied Optoelectronics ( AAOI ) is the top-ranked stock within the group. The Relative Strength ( RS ) Rating for Lumentum ( LITE ) headed into a higher percentile Friday, as it got a lift from 69 to 75. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
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Applied Optoelectronics ( AAOI ) is the top-ranked stock within the group. See if Lumentum can continue to show renewed price strength and clear that threshold. Which Stocks Are Showing Rising Relative Strength?
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e2387ef7-1d36-41e9-998f-98ec8f673eb7
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9765.0
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2017-09-20 00:00:00 UTC
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2 Risks Investors Might Be Ignoring About Applied Optoelectronics
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AAOI
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https://www.nasdaq.com/articles/2-risks-investors-might-be-ignoring-about-applied-optoelectronics-2017-09-20
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nan
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nan
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The stock of broadband fiber network parts supplier Applied Optoelectronics Inc (NASDAQ: AAOI) is down some 30% since its latest quarterly report after hitting record levels in July. The stock is up roughly 175% so far this year. Based on forward expectations, the stock looks pretty cheap, but the drop may not be over if the company can't maintain its revenue and profit momentum.
The cyclical nature of sales
A couple of months ago -- right before AOI's big slump started -- I warned investors of the biggest risks facing tech supply companies: sales cycles. My piece was by no means prophetic, nor do I possess any special insight here. Rather, it's simply about understanding the fact that following a big boom in sales, companies that supply parts used in a more complex final product tend to experience a slowdown.
Such has been the case with AOI. When the company reported on its second quarter last month, it notched another big year-over-year gain in sales, especially in its bread-and-butter internet data center division. However, management warned that the previous momentum was unsustainable as a slowdown is expected in sales to a key data center customer (read Amazon.com ). Let's take a look at some of Applied Optoelectronics numbers.
Data source: Applied Optoelectronics.
Adding to the problem is that a majority of AOI's sales are concentrated with just a handful of customers. For example, 74% of data center sales came from just two customers during the second quarter. Talk about putting all your eggs in one basket.
The company has been working to establish new customer relationships, but it will take some time for those to account for a meaningful share of sales.
Profits follow sales
A big tailwind for AOI in the last year has been increasing profit margins. In the last quarter, revenue was up 112%, and gross margin increased to 45% compared with 31% last year. As a result, earnings per share were $1.43 compared to $0.03 in the second quarter of 2016.
Data by YCharts.
Why the big boost to profits? AOI still hasn't realized a big enough scale of operations that consistently covers fixed expenses and maximizes profit. With the higher sales in the last year, those costs got covered, and an increasing amount of the income went to the bottom line -- thus, the big percentage gains from a smaller top-line percent increase.
If sales continue to grind higher, AOI could see more big bumps to that bottom figure that matters most. However, that also implies that a drop in sales could see profit margins drop just as dramatically as they rose. What has been a massive tailwind in the last year could turn into a headwind.
Food for thought
After the big pullback, AOI stock may well be a bargain . Its trailing-12-month price-to-earnings ratio is at 19.7, but that number drops to 9.7 using profit expectations in the year to come.
However, with management's new outlook that quarter-over-quarter sequential growth is stalling out from its data center business, there is still risk that this downturn isn't over. The long and the short: Don't chase this stock. If you believe data center build-outs will continue well into the future, buy for the long term, not over speculation of a quick bounce-back to all-time highs.
10 stocks we like better than Applied Optoelectronics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Applied Optoelectronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of September 5, 2017
Nicholas Rossolillo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock of broadband fiber network parts supplier Applied Optoelectronics Inc (NASDAQ: AAOI) is down some 30% since its latest quarterly report after hitting record levels in July. Based on forward expectations, the stock looks pretty cheap, but the drop may not be over if the company can't maintain its revenue and profit momentum. Rather, it's simply about understanding the fact that following a big boom in sales, companies that supply parts used in a more complex final product tend to experience a slowdown.
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The stock of broadband fiber network parts supplier Applied Optoelectronics Inc (NASDAQ: AAOI) is down some 30% since its latest quarterly report after hitting record levels in July. The cyclical nature of sales A couple of months ago -- right before AOI's big slump started -- I warned investors of the biggest risks facing tech supply companies: sales cycles. Profits follow sales A big tailwind for AOI in the last year has been increasing profit margins.
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The stock of broadband fiber network parts supplier Applied Optoelectronics Inc (NASDAQ: AAOI) is down some 30% since its latest quarterly report after hitting record levels in July. The cyclical nature of sales A couple of months ago -- right before AOI's big slump started -- I warned investors of the biggest risks facing tech supply companies: sales cycles. When the company reported on its second quarter last month, it notched another big year-over-year gain in sales, especially in its bread-and-butter internet data center division.
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The stock of broadband fiber network parts supplier Applied Optoelectronics Inc (NASDAQ: AAOI) is down some 30% since its latest quarterly report after hitting record levels in July. The stock is up roughly 175% so far this year. For example, 74% of data center sales came from just two customers during the second quarter.
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188a50cd-ab3e-47af-8436-ed1ef8c4c5d7
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9766.0
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2017-09-15 00:00:00 UTC
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Notable Friday Option Activity: USCR, BWLD, AAOI
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AAOI
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https://www.nasdaq.com/articles/notable-friday-option-activity-uscr-bwld-aaoi-2017-09-15
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in US Concrete Inc (Symbol: USCR), where a total volume of 2,943 contracts has been traded thus far today, a contract volume which is representative of approximately 294,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 63% of USCR's average daily trading volume over the past month, of 467,500 shares. Particularly high volume was seen for the $75 strike call option expiring November 17, 2017 , with 1,073 contracts trading so far today, representing approximately 107,300 underlying shares of USCR. Below is a chart showing USCR's trailing twelve month trading history, with the $75 strike highlighted in orange:
Buffalo Wild Wings Inc (Symbol: BWLD) options are showing a volume of 2,589 contracts thus far today. That number of contracts represents approximately 258,900 underlying shares, working out to a sizeable 61.5% of BWLD's average daily trading volume over the past month, of 421,140 shares. Particularly high volume was seen for the $115 strike call option expiring October 20, 2017 , with 468 contracts trading so far today, representing approximately 46,800 underlying shares of BWLD. Below is a chart showing BWLD's trailing twelve month trading history, with the $115 strike highlighted in orange:
And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 12,918 contracts, representing approximately 1.3 million underlying shares or approximately 61.1% of AAOI's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $90 strike put option expiring September 15, 2017 , with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $90 strike highlighted in orange:
For the various different available expirations for USCR options , BWLD options , or AAOI options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $90 strike put option expiring September 15, 2017 , with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of AAOI. Below is a chart showing BWLD's trailing twelve month trading history, with the $115 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 12,918 contracts, representing approximately 1.3 million underlying shares or approximately 61.1% of AAOI's average daily trading volume over the past month, of 2.1 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for USCR options , BWLD options , or AAOI options , visit StockOptionsChannel.com.
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Below is a chart showing BWLD's trailing twelve month trading history, with the $115 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 12,918 contracts, representing approximately 1.3 million underlying shares or approximately 61.1% of AAOI's average daily trading volume over the past month, of 2.1 million shares. Below is a chart showing AAOI's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for USCR options , BWLD options , or AAOI options , visit StockOptionsChannel.com. Particularly high volume was seen for the $90 strike put option expiring September 15, 2017 , with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of AAOI.
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Below is a chart showing BWLD's trailing twelve month trading history, with the $115 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 12,918 contracts, representing approximately 1.3 million underlying shares or approximately 61.1% of AAOI's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $90 strike put option expiring September 15, 2017 , with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for USCR options , BWLD options , or AAOI options , visit StockOptionsChannel.com.
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Below is a chart showing BWLD's trailing twelve month trading history, with the $115 strike highlighted in orange: And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 12,918 contracts, representing approximately 1.3 million underlying shares or approximately 61.1% of AAOI's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $90 strike put option expiring September 15, 2017 , with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for USCR options , BWLD options , or AAOI options , visit StockOptionsChannel.com.
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44425438-d8dc-4391-840e-4966f6794898
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9767.0
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2017-09-12 00:00:00 UTC
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Why Finisar Corp. Stock Fell 11% in August
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AAOI
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https://www.nasdaq.com/articles/why-finisar-corp-stock-fell-11-august-2017-09-12
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nan
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nan
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What happened
Shares of Finisar (NASDAQ: FNSR) fell 11.3% in August 2017, according to data from S&P Global Market Intelligence . The maker of optical communication components didn't present any huge news of its own last month, but share prices took a big haircut based on gloomy market forecasts from sector peers Applied Optoelectronics (NASDAQ: AAOI) , Infinera (NASDAQ: INFN) , and Ciena (NYSE: CIEN) .
So what
The month started off on a sour note. On Aug. 3, both long-range networking expert Infinera and high-speed transceiver maker Applied Optoelectronics published their latest quarterly results. Both companies beat Wall Street's expectations, but both also pointed to modest growth in the next report due to soft market trends. Applied Optoelectronics' shares plunged 26% lower the next day, followed by a 17% drop in Infinera's stock value. Finisar simply followed suit with a 7% drop, as investors saw growth prospects drying up across the optical networking industry as a whole.
Later, telecom-grade optical networking specialist Ciena published another solid quarterly report -- complete with a weak revenue guidance target for the current operating period. Ciena shares fell 9% on that news, taking Finisar along for another 3.5% drop.
Now what
Finisar presented a quarterly update of its own in early September, but the report only underscored the market readings investors had already gleaned from peers like Infinera and Applied Optoelectronics. Like everyone else, the company saw strong demand for its fastest networking components and lower interest in aging legacy products. And like everyone else, Finisar is scrambling to update its manufacturing operations in order to keep up with hefty demand for a new generation of optical networking products.
As a whole, the industry is moving along to the next era of high-speed networking a little bit faster than anyone had expected at the start of 2017. The missing volume of telecom and data center orders should come roaring back once Finisar and friends are able to crank out enough high-speed parts to keep the order pipeline flowing.
Finisar's management is clearly confident in strong long-term business trends. The company is currently building another manufacturing facility in Wuxi, China, that should start producing components by the summer of 2018. At this point, Finisar investors are staring down a handful of short-term speed bumps but also a great outlook for 2018 and beyond. Telecoms should start rolling out their 5G wireless networks as soon as the supporting technology is ready, and data center customers can't get enough of those 100-gigabit transceivers.
Meanwhile, Finisar shares are trading at a frugal 9.8 times trailing earnings and 13 times free cash flows. Value-conscious investors should take a closer look at Finisar as an attractive long-term play right now.
10 stocks we like better than Finisar
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Finisar wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 5, 2017
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Infinera. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The maker of optical communication components didn't present any huge news of its own last month, but share prices took a big haircut based on gloomy market forecasts from sector peers Applied Optoelectronics (NASDAQ: AAOI) , Infinera (NASDAQ: INFN) , and Ciena (NYSE: CIEN) . Later, telecom-grade optical networking specialist Ciena published another solid quarterly report -- complete with a weak revenue guidance target for the current operating period. Now what Finisar presented a quarterly update of its own in early September, but the report only underscored the market readings investors had already gleaned from peers like Infinera and Applied Optoelectronics.
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The maker of optical communication components didn't present any huge news of its own last month, but share prices took a big haircut based on gloomy market forecasts from sector peers Applied Optoelectronics (NASDAQ: AAOI) , Infinera (NASDAQ: INFN) , and Ciena (NYSE: CIEN) . On Aug. 3, both long-range networking expert Infinera and high-speed transceiver maker Applied Optoelectronics published their latest quarterly results. Later, telecom-grade optical networking specialist Ciena published another solid quarterly report -- complete with a weak revenue guidance target for the current operating period.
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The maker of optical communication components didn't present any huge news of its own last month, but share prices took a big haircut based on gloomy market forecasts from sector peers Applied Optoelectronics (NASDAQ: AAOI) , Infinera (NASDAQ: INFN) , and Ciena (NYSE: CIEN) . Now what Finisar presented a quarterly update of its own in early September, but the report only underscored the market readings investors had already gleaned from peers like Infinera and Applied Optoelectronics. 10 stocks we like better than Finisar When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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The maker of optical communication components didn't present any huge news of its own last month, but share prices took a big haircut based on gloomy market forecasts from sector peers Applied Optoelectronics (NASDAQ: AAOI) , Infinera (NASDAQ: INFN) , and Ciena (NYSE: CIEN) . On Aug. 3, both long-range networking expert Infinera and high-speed transceiver maker Applied Optoelectronics published their latest quarterly results. Applied Optoelectronics' shares plunged 26% lower the next day, followed by a 17% drop in Infinera's stock value.
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d1aef6ce-3952-4137-9f97-4cc6d532c3ba
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9768.0
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2017-09-12 00:00:00 UTC
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Why the Earnings Streak Will Continue for Applied Optoelectronics (AAOI)
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AAOI
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https://www.nasdaq.com/articles/why-the-earnings-streak-will-continue-for-applied-optoelectronics-aaoi-2017-09-12
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nan
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nan
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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Applied Optoelectronics, Inc.AAOI , a firm in the Electronics - Semiconductors industry, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, AAOI has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, AAOI expected to post a earnings of 95 cents per share, while it actually produced an earnings of $1.10 per share, a beat of 15.8%. Meanwhile, for the most recent quarter, the company looked to deliver a earnings of $1.35 per share, when it actually posted earnings of $1.54 per share instead, representing a 14.1% positive surprise.
Applied Optoelectronics, Inc. Price and EPS Surprise
Applied Optoelectronics, Inc. Price and EPS Surprise | Applied Optoelectronics, Inc. Quote
Thanks in part to this history, recent estimates have been moving higher for Applied Optoelectronics. In fact, the Earnings ESP for AAOI is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for AAOI, as the firm currently has a Zacks Earnings ESP of +6.76%, so another beat could be around the corner.
This is particularly true when you consider that AAOI has a great Zacks Rank #3 (Hold) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that AAOI could see another beat at its next report, especially if recent trends are any guide.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, in these reports, AAOI has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations. This is particularly true when you consider that AAOI has a great Zacks Rank #3 (Hold) which can be a harbinger of outperformance and a signal for a strong earnings profile. Consider Applied Optoelectronics, Inc.AAOI , a firm in the Electronics - Semiconductors industry, which could be a great candidate for another beat.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Consider Applied Optoelectronics, Inc.AAOI , a firm in the Electronics - Semiconductors industry, which could be a great candidate for another beat. In fact, in these reports, AAOI has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.
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Earnings in Focus Two quarters ago, AAOI expected to post a earnings of 95 cents per share, while it actually produced an earnings of $1.10 per share, a beat of 15.8%. When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that AAOI could see another beat at its next report, especially if recent trends are any guide. Consider Applied Optoelectronics, Inc.AAOI , a firm in the Electronics - Semiconductors industry, which could be a great candidate for another beat.
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In fact, the Earnings ESP for AAOI is positive, which is a great sign of a coming beat. When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that AAOI could see another beat at its next report, especially if recent trends are any guide. Consider Applied Optoelectronics, Inc.AAOI , a firm in the Electronics - Semiconductors industry, which could be a great candidate for another beat.
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e3b0f216-640a-4e8a-bac5-382d061c1c97
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9769.0
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2017-09-11 00:00:00 UTC
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Oracle (ORCL) to Post Q1 Results: Can It Beat on Earnings?
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AAOI
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https://www.nasdaq.com/articles/oracle-orcl-to-post-q1-results%3A-can-it-beat-on-earnings-2017-09-11
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nan
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nan
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Oracle CorporationORCL is set to report first-quarter fiscal 2018 earnings on Sep 14.
Notably, the company has beaten the Zacks Consensus Estimate in two of the trailing four quarters. Last quarter, the company delivered a positive earnings surprise of 14.10%.
Adjusted earnings of 89 cents per share and revenues of $10.94 billion comfortably beat the Zacks Consensus Estimate of 78 cents and $10.48 billion, respectively. Revenue growth of 3.3% (4% in constant currency) was also better than management's guidance of 1% to 2%. Oracle's top-line growth benefited from the ongoing cloud-based momentum.
Total revenue for first-quarter fiscal 2018 is anticipated to grow in the range of 4-6%. Earnings are anticipated to be between 59 cents and 61 cents for the quarter, with an impact of couple of cents from adverse currency headwind.
Oracle Corporation Price and EPS Surprise
Oracle Corporation Price and EPS Surprise | Oracle Corporation Quote
Oracle's stock has gained 34.2% year to date, substantially outperforming the 25.3% rally of the industry it belongs to.
Let's see how things are shaping up for this announcement.
Factors to Consider
Oracle is benefiting from significant momentum in its Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) offerings. This has also helped in improving the company's competitive position against salesforce.com CRM and Workday.
We believe that the company's growing cloud market share will continue to drive top-line growth. This is further evident from the expanding customer base.
During the last quarter, Oracle's cloud offerings attracted organizations like Advanced Drainage Systems, ARRIS, Australian Finance Group, Benchmark, Detroit Water and Sewerage, Immofinanz AG, Malmo stad, Marz Systems, Mebrom, Nuvias Group, Pernod Ricard Asia, Telesoft and Total.
Moreover, Oracle Analytics Cloud has also gained significant traction. The updated product offers new features such as user-driven scenario modeling, next-generation mobile and social analytics and complete customer control. Oracle recently stated that 75% of Oracle Analytics Cloud customers are new to the platform that reflects strong adoption rate.
However, higher investments on IaaS will affect gross margin expansion in the near term. Further, a strong U.S. dollar remains a headwind.
Earnings Whispers
Our proven model does not conclusively show that Oracle is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP : Oracle currently has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 61 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Oracle has a Zacks Rank #3 that increases the predictive power of ESP. However, the company's ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
The following stocks can be considered at the moment, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Applied Optoelectronics Inc. AAOI has an Earnings ESP of +6.76% and sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
ManTech International Corporation MANT has an Earnings ESP of +1.96% and carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ManTech International Corporation (MANT): Free Stock Analysis Report
Salesforce.com Inc (CRM): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider The following stocks can be considered at the moment, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases: Applied Optoelectronics Inc. AAOI has an Earnings ESP of +6.76% and sports a Zacks Rank #1. Click to get this free report ManTech International Corporation (MANT): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. During the last quarter, Oracle's cloud offerings attracted organizations like Advanced Drainage Systems, ARRIS, Australian Finance Group, Benchmark, Detroit Water and Sewerage, Immofinanz AG, Malmo stad, Marz Systems, Mebrom, Nuvias Group, Pernod Ricard Asia, Telesoft and Total.
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Click to get this free report ManTech International Corporation (MANT): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider The following stocks can be considered at the moment, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases: Applied Optoelectronics Inc. AAOI has an Earnings ESP of +6.76% and sports a Zacks Rank #1. Oracle Corporation Price and EPS Surprise Oracle Corporation Price and EPS Surprise | Oracle Corporation Quote Oracle's stock has gained 34.2% year to date, substantially outperforming the 25.3% rally of the industry it belongs to.
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Click to get this free report ManTech International Corporation (MANT): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider The following stocks can be considered at the moment, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases: Applied Optoelectronics Inc. AAOI has an Earnings ESP of +6.76% and sports a Zacks Rank #1. Oracle Corporation Price and EPS Surprise Oracle Corporation Price and EPS Surprise | Oracle Corporation Quote Oracle's stock has gained 34.2% year to date, substantially outperforming the 25.3% rally of the industry it belongs to.
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Stocks to Consider The following stocks can be considered at the moment, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases: Applied Optoelectronics Inc. AAOI has an Earnings ESP of +6.76% and sports a Zacks Rank #1. Click to get this free report ManTech International Corporation (MANT): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 14.10%.
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e7010f41-63bb-40bf-b47e-9f2f40ef25ce
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9770.0
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2017-09-11 00:00:00 UTC
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Apple's (AAPL) Mega Edition iPhone to be Named iPhone X
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AAOI
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https://www.nasdaq.com/articles/apples-aapl-mega-edition-iphone-to-be-named-iphone-x-2017-09-11
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nan
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nan
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Apple Inc 's AAPL much awaited mega edition iPhone will be called iPhone X while the other two editions will be called iPhone 8 and iPhone 8 Plus, respectively.
Per media reports, there has been a massive leak, most probably by a displeased employee, which has revealed too much information about the new phones and iOS 11.
Noted Apple blogger, John Gruber in his post stated "Someone within Apple leaked the list of URLs to 9to5Mac and MacRumors. I'm nearly certain this wasn't a mistake, but rather a deliberate malicious act by a rogue Apple employee."
Apple Inc. Price
Apple Inc. Price | Apple Inc. Quote
BBC has said that it has verified that the information was indeed provided by an anonymous source, to the above-mentioned two publications, by leaking the iOS 11's golden master (GM) code links. The links enabed data download from Apple's internal servers.
Per sources, the leaks have revealed references to iPhone X that will have a new facial unlocking technology. There will be no home button to make room for a large screen. The new phone will have a virtual home bar, which is expected to be operated by gesture controls. The new phone will have the 18.5:9 elongated aspect ratio along with a resolution of 2436 x 1125 pixels.
Reportedly, there are also leaked images of the new Apple Watch and AirPod. There is also a reference to animoji, which is apparently a messaging app that deploys 3D technology to create emojis that imitate the users' expression, per media reports.
Expectations regarding the upcoming iPhone X are humongous as it marks the tenth anniversary of the first iPhone. The revolutionary iPhone, first released in June 2007, had changed the world forever. The iPhone was the first phone to have a touch screen and was a "breakthrough internet device".
Upon release, the phone received terrific response. Following that, the success of iPhone over the last decade is well chronicled. Apple has sold over a billion iPhones across the globe. However, over the past few quarters, Apple's iPhone sales have been marred by increasing competition, especially in China from cheaper handsets like Oppo and Vivo.
Apple's big event will be held on Sep 12, 2017 at the Steve Jobs Theater at its new headquarters in Cupertino, CA, per reports.
Zacks Rank and Share Price Movement
At present, Apple carries a Zacks Rank #3 (Hold).
Notably, the company has outperformed the industry in the past year. Shares of Apple have surged 50.5% compared with the industry's 48.9% increase.
Stocks to Consider
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively .
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. There is also a reference to animoji, which is apparently a messaging app that deploys 3D technology to create emojis that imitate the users' expression, per media reports.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Apple Inc 's AAPL much awaited mega edition iPhone will be called iPhone X while the other two editions will be called iPhone 8 and iPhone 8 Plus, respectively.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc 's AAPL much awaited mega edition iPhone will be called iPhone X while the other two editions will be called iPhone 8 and iPhone 8 Plus, respectively.
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f06dd85b-da20-4d78-9ca9-223ca230d5ed
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9771.0
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2017-09-11 00:00:00 UTC
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Amazon (AMZN) Plans Second Headquarter, Seeks Proposals
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AAOI
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https://www.nasdaq.com/articles/amazon-amzn-plans-second-headquarter-seeks-proposals-2017-09-11
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nan
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nan
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It seems that the massive Seattle headquarters are not enough to support the continuously growing Amazon.com, Inc.AMZN . It is gearing up for a second headquarter in North America that can accommodate as many as 50,000 employees and spending $5 billion for it.
Yesterday, the company announced plans for what it calls Amazon HQ2 and sought submission of response to its request for proposal (RFP). Amazon said that jobs at HQ2 will mostly be in software development with average annual compensation of $100,000 over 15 years.
Amazon founder and CEO Jeff Bezos stated, "We expect HQ2 to be a full equal to our Seattle headquarters."
We observe that Amazon shares have gained 28.8% year to date, underperforming the 46.7% rally of the industry it belongs to.
Set Criteria Indicate Meaningful Expansion
Amazon prefers urban or suburban but metropolitan locations, home to more than 1 million people, offering a stable and business-friendly environment, real estate options and with resources to attract strong technical talent.
The location need not have to offer an urban or downtown campus, a layout resembling Amazon's Seattle campus or a development-prepped site. Notably, Amazon has stressed on "communities that think big and creatively when considering locations and real estate options."
The stated preferences indicate that a massive and more meaningful expansion is on its way. The expansion of headquarters straightway indicates expansion of global operations, which is actually happening and the company needs to support that from its core. The company is surely thinking several years down the road.
Amazon is one of the world's fastest growing companies with fingers in almost every pie. The company has been ramping up its efforts in both online and brick-and-mortar retail leveraging on its solid loyalty system in Prime and its Fulfillment By Amazon (FBA) strategy.
Amazon.com, Inc. Net Income (TTM)
Amazon.com, Inc. Net Income (TTM) | Amazon.com, Inc. Quote
Amazon Web Services (AWS) remains the cloud infrastructure leader and continues to grow on partners and consumers. The company is racing to build an ecosystem around Alexa. Alexa powered Echo devices are going great guns and help the company sell products and services.
It has recently made two big acquisitions that of Whole Foods and Souq.com, accelerating its choice of buy option over build.
Smoothened Relations with the White House
Amazon founder and chairman Jeff Bezos and President-elect Donald Trump did not seem to have good relations during the presidential campaign. But things appear to be easing after the results as Bezos was among the leading technology industry executives to meet Trump.
The President-elect has urged technology leaders to create and retain jobs within the United States. Since then. Amazon has frequently made announcements related to job creation in the United States.
Cities Racing to Win Amazon
Toronto, Dallas, Houston, St. Louis, Kentucky and Miami are among the many that have expressed interest. We expect many more to come forward and the bidding to be fierce.
Amazon has launched a special website where representatives of cities and regional economic development organizations can put up their responses to the proposal. The company wants to wind up the response acceptance process by October and final selection by 2018.
Economic Development in Focus
Amazon in its press release notes that from 2010 to 2016, the company's investments in Seattle have generated an economic impact of $38 billion in the city. That's an additional 1.4 dollars against each dollar invested in Seattle by Amazon.
City and state heads are surely eyeing a repetition of Amazon's economic impact on Seattle's in their own areas and thus have started gearing up to grab the opportunity.
Currently, cities and states are increasingly attracting technology companies as they bring in huge employment opportunities and attract other businesses, thus boosting the overall economy. They are ready to give away massive benefits mainly in the form of tax breaks in return as they know that economic development often outweighs loss in tax.
Growth at the Cost of Margins?
Amazon's global margins are likely to be under pressure at least for a few years. Amazon continues to invest heavily on fulfillment centers, TV shows and movies, AWS, acquisitions, India expansion and what not. The proposed 5 billion investments on its second headquarters is just another example.
Amazon has never hesitated to sacrifice margins to pursue its long-term objectives - bringing more customers under its umbrella and giving them reasons to stay. Since it generates significant cash from operations and holds a huge cash balance, management has the flexibility to pursue even more growth.
Zacks Rank and Stocks to Consider
Amazon has a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the broader technology sector include Applied Materials, Inc. AMAT , Activision Blizzard, Inc. ATVI and Applied Optoelectronics, Inc. AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials, Inc. AMAT , Activision Blizzard, Inc. ATVI and Applied Optoelectronics, Inc. AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Set Criteria Indicate Meaningful Expansion Amazon prefers urban or suburban but metropolitan locations, home to more than 1 million people, offering a stable and business-friendly environment, real estate options and with resources to attract strong technical talent.
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Better-ranked stocks in the broader technology sector include Applied Materials, Inc. AMAT , Activision Blizzard, Inc. ATVI and Applied Optoelectronics, Inc. AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Amazon.com, Inc. Net Income (TTM) Amazon.com, Inc. Net Income (TTM) | Amazon.com, Inc. Quote Amazon Web Services (AWS) remains the cloud infrastructure leader and continues to grow on partners and consumers.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials, Inc. AMAT , Activision Blizzard, Inc. ATVI and Applied Optoelectronics, Inc. AAOI , all sporting a Zacks Rank #1 (Strong Buy). Economic Development in Focus Amazon in its press release notes that from 2010 to 2016, the company's investments in Seattle have generated an economic impact of $38 billion in the city.
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Better-ranked stocks in the broader technology sector include Applied Materials, Inc. AMAT , Activision Blizzard, Inc. ATVI and Applied Optoelectronics, Inc. AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. It seems that the massive Seattle headquarters are not enough to support the continuously growing Amazon.com, Inc.AMZN .
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42d2b31a-e99e-4af6-a774-15950236ee64
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9772.0
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2017-09-08 00:00:00 UTC
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Scientific Games Secures Contract for 4200 Units of iVIEW4
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AAOI
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https://www.nasdaq.com/articles/scientific-games-secures-contract-for-4200-units-of-iview4-2017-09-08
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nan
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nan
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Scientific Games CorporationSGMS has been awarded a contract by Temecula, CA-based Pechanga Resort & Casino to provide 4,200 new iVIEW4 on-device player-interface controllers. These will be installed inside all slot machines at the resort's casino floor.
The iVIEW4 technology enables casino operators to attract more gamers by providing interactive and personalized gaming experience, instant response through multi-touch display and permitting cardless play. It also supports HTML5 graphics and uses web widgets to help casino marketers update content with ads and videos very smoothly. Moreover, the solution expands games and content memory by 10 times and makes start-up seven times faster.
We believe the popularity of iVIEW4 technology in the market will help to sustain the momentum in Scientific Games' shares, which have gained 156.5% year to date, substantially outperforming the industry's 12.2% rally.
Increasing Clientele for iVIEW4
In the last reported quarter, almost 60% of Scientific Games' total revenue was contributed by its gaming segment, which was driven by growth in Gaming Machine sales and Gaming Systems. The year-over-year growth in Gaming Systems revenues was driven by an increase in software and hardware sales, including shipment of new iVIEW4 player-interface display units.
The iVIEW4 technology bodes well for the company as it ensures a steady flow of customers. In March 2017, the company received a contract for 2,800 new iVIEW4 displays from Auburn, WA-based Muckleshoot Casino. Scientific Games' iVIEW technology is also installed in all the 1,140 slot machines of Bahama-based Baha Mar Casinos.
Contracts from such popular casinos like Pechanga and Muckleshoot indicate increasing adoption of iVIEW4. Per market research firm Technavio, global slot machine market is expected to witness CAGR of 15.49% during the period 2017-2021. We believe the sophisticated and advanced features of iView4 technology will help the company to cash in on the growing global slot machine market and be a key growth driver going ahead.
However, increasing investments for product development are anticipated to weigh on margins.
Scientific Games Corp Price
Scientific Games Corp Price | Scientific Games Corp Quote
Zacks Rank & Stocks to Consider
Currently, Scientific Games carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Applied Optoelectronics AAOI and Activision Blizzard ATVI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Applied Optoelectronics and Activision is currently projected to be 17.1%, 17.5% and 13.6%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Scientific Games Corp (SGMS): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Applied Optoelectronics AAOI and Activision Blizzard ATVI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. The iVIEW4 technology enables casino operators to attract more gamers by providing interactive and personalized gaming experience, instant response through multi-touch display and permitting cardless play.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Applied Optoelectronics AAOI and Activision Blizzard ATVI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Scientific Games Corp Price Scientific Games Corp Price | Scientific Games Corp Quote Zacks Rank & Stocks to Consider Currently, Scientific Games carries a Zacks Rank #3 (Hold).
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Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Applied Optoelectronics AAOI and Activision Blizzard ATVI , all sporting a Zacks Rank #1 (Strong Buy). Increasing Clientele for iVIEW4 In the last reported quarter, almost 60% of Scientific Games' total revenue was contributed by its gaming segment, which was driven by growth in Gaming Machine sales and Gaming Systems.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Applied Optoelectronics AAOI and Activision Blizzard ATVI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Scientific Games Corp Price Scientific Games Corp Price | Scientific Games Corp Quote Zacks Rank & Stocks to Consider Currently, Scientific Games carries a Zacks Rank #3 (Hold).
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489ffd66-d589-4be4-a9a1-3b716f7478bc
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9773.0
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2017-09-08 00:00:00 UTC
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Symantec (SYMC) Up More Than 3%: Can the Rally Continue?
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AAOI
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https://www.nasdaq.com/articles/symantec-symc-up-more-than-3%3A-can-the-rally-continue-2017-09-08
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nan
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nan
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Symantec Corporation SYMC shares have added about 3.4% in yesterday's trading session, outperforming the market.
In the year-to-date period, its shares have gained 28.1%, outperforming the industry 's gain of 24.3%.
Growth Drivers
There were a plenty of reasons which boosted the company's shares, which includes a better-than-expected first-quarter bottom-line result, upbeat fiscal 2018 revenue guidance and an agreement relating to the sale of its web certificates business.
Symantec's revenues of $1.175 billion jumped 32.9% year over year and came ahead of its guidance range of $1.133-$1.163 billion (mid-point $1.148 billion). The robust top-line results were mainly driven by strong performance across the company's Enterprise Security and Consumer Digital Safety segments, as well as benefit from acquisitions and favourable currency exchange rates.
Non-GAAP earnings per share increased 13.8% year over year to 33 cents and came above the company's projected range of 28-32 cents.
Beating its own guidance range at every point made the company optimistic about its solid prospects and therefore, it raised fiscal 2018 revenue and non-GAAP earnings outlook. For the fiscal, Symantec now expects GAAP revenues in the range of $5.037-$5.137 billion (mid-point $5.087 billion) and non-GAAP revenues in the range of $5,160-$5,260 billion (mid-point $5.210 billion), up from the previous guidance ranges of $4.977-$5.077 billion (mid-point $5.02 billion) and $5,100-$5,200 billion (mid-point $5.150 billion), respectively. The Zacks Consensus Estimate for the fiscal is pegged at $5.15 billion.
Non-GAAP earnings per share are now projected to come between $1.79 and $1.89, up from the earlier forecast of $1.75-$1.85.
Symantec had also announced that privately owned DigiCert Inc. has agreed to buy its Website Security business for $950 million in cash and approximately 30% stake in the latter's business. Symantec's Website Security solution verifies the identity of websites.
We believe that the recent move is an effort by the company to end the ongoing dispute with Alphabet's GOOGL Google which has accused it for mis-issuing over 30,000 of web certifications.
Going ahead, the prospects of cybersecurity companies look bright as the recent global hackings, like WannaCry and Petya, have started to adversely affect the top and bottom-line results of various organizations like Mondelez, FedEx and Merck & Co. The silver lining in this entire episode will be the rise in demand for security-related products among companies and governments, in our opinion.
We believe that this could bring Symantec back in to the limelight. Moreover, the recent deal to acquire Israel-based Fireglass will further strengthen its leadership position in Secure Web Gateway and Email protection, both delivered on premises and in the cloud.
Moreover, investment in growth areas such as Enterprise Backup, Storage Management and Security businesses are likely to boost its long-term prospects. Additionally, restructuring initiatives and synergies from acquisitions are likely to support the company's bottom-line.
Valuation
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 16.3x, significantly lower than the industry average of 45.9x. The ratio, which is obtained by dividing a stock's current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Therefore, lower the P/E of a stock, the better for investors.
Notably, the stock carries a Zacks Rank #3 (Hold). Last quarter, the company posted a positive earnings surprise of 10%. Additionally, the stock has long-term earnings per share growth rate of 11.2%.
To Conclude
In our opinion, the stock deserves a place in investor's portfolio and we are expecting an impressive return from the stock in the next few months.
Better-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI and Micron Technology, Inc. MU , both sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term expected EPS growth rate for Applied Optoelectronics and Micron is 17.5% and 10%, respectively.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Symantec Corporation (SYMC): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI and Micron Technology, Inc. MU , both sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Growth Drivers There were a plenty of reasons which boosted the company's shares, which includes a better-than-expected first-quarter bottom-line result, upbeat fiscal 2018 revenue guidance and an agreement relating to the sale of its web certificates business.
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Better-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI and Micron Technology, Inc. MU , both sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. For the fiscal, Symantec now expects GAAP revenues in the range of $5.037-$5.137 billion (mid-point $5.087 billion) and non-GAAP revenues in the range of $5,160-$5,260 billion (mid-point $5.210 billion), up from the previous guidance ranges of $4.977-$5.077 billion (mid-point $5.02 billion) and $5,100-$5,200 billion (mid-point $5.150 billion), respectively.
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Better-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI and Micron Technology, Inc. MU , both sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. For the fiscal, Symantec now expects GAAP revenues in the range of $5.037-$5.137 billion (mid-point $5.087 billion) and non-GAAP revenues in the range of $5,160-$5,260 billion (mid-point $5.210 billion), up from the previous guidance ranges of $4.977-$5.077 billion (mid-point $5.02 billion) and $5,100-$5,200 billion (mid-point $5.150 billion), respectively.
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Better-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI and Micron Technology, Inc. MU , both sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here . Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Symantec Corporation (SYMC): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the stock has long-term earnings per share growth rate of 11.2%.
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f85c3b9c-7281-4c8b-9763-83eeea0e37fc
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9774.0
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2017-09-08 00:00:00 UTC
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Why Applied Optoelectronics Inc. Stock Plunged 39% Lower in August
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-inc-stock-plunged-39-lower-august-2017-09-08
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nan
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nan
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What happened
Shares of Applied Optoelectronics (NASDAQ: AAOI) took a hard fall in early August due to a solid earnings report with a disappointing slate of forward guidance targets. AOI shares closed 31% lower the next day and ended the month at a 39% discount to the last trades of July, according to data from S&P Global Market Intelligence .
So what
The maker of components and modules that translate high-speed networking signals between fiber-optic signals and traditional Ethernet formats actually crushed analyst targets in the second quarter. Sales more than doubled year over year to $117.4 million while adjusted earnings rose nearly tenfold to $1.54 per share. Analysts would have settled for earnings of $1.32 per share on sales near $116 million.
But AOI's revenue guidance of $111 million for the third quarter fell far short of Wall Street's expectations, which were calling for $123 million at the time. That metric overwhelmed AOI's positive trends, sending share prices through the trading floor.
Now what
The soft sales guidance is based on low shipping volumes of the aging 40-gigabit transceiver product line , which is being phased out in favor of faster 100G and even 200G variants. The product mix is simply shifting a bit faster than anyone had expected, and AOI wasn't prepared to replace the old 40G products with updated transceivers just yet. It takes time to retool the manufacturing lines, after all.
Customer demand for AOI's fiber optic tools remains high and rising, and management likes to point out that its shipping volumes are limited by the company's manufacturing capacity more than anything else. The stock is going through some uncomfortable volatility while these kinks are being worked out. Share prices soared 58% higher in July only to lose those gains in August, and the roller-coaster ride is likely to continue. Feel free to take a closer look at AOI's long-term prospects anytime the stock goes on fire sale, such as right now.
10 stocks we like better than Applied Optoelectronics
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) took a hard fall in early August due to a solid earnings report with a disappointing slate of forward guidance targets. Now what The soft sales guidance is based on low shipping volumes of the aging 40-gigabit transceiver product line , which is being phased out in favor of faster 100G and even 200G variants. Customer demand for AOI's fiber optic tools remains high and rising, and management likes to point out that its shipping volumes are limited by the company's manufacturing capacity more than anything else.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) took a hard fall in early August due to a solid earnings report with a disappointing slate of forward guidance targets. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) took a hard fall in early August due to a solid earnings report with a disappointing slate of forward guidance targets. 10 stocks we like better than Applied Optoelectronics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. *Stock Advisor returns as of September 5, 2017 Anders Bylund has no position in any of the stocks mentioned.
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What happened Shares of Applied Optoelectronics (NASDAQ: AAOI) took a hard fall in early August due to a solid earnings report with a disappointing slate of forward guidance targets. But AOI's revenue guidance of $111 million for the third quarter fell far short of Wall Street's expectations, which were calling for $123 million at the time. That metric overwhelmed AOI's positive trends, sending share prices through the trading floor.
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03b38f57-bf2a-406e-9af3-33394f80556e
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9775.0
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2017-09-07 00:00:00 UTC
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GoDaddy (GDDY) Invests $15M for Gilbert Office Expansion
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AAOI
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https://www.nasdaq.com/articles/godaddy-gddy-invests-%2415m-for-gilbert-office-expansion-2017-09-07
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nan
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nan
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GoDaddy Inc.GDDY is expanding its Gilbert Office by 15,000 square feet and with a $15 million investment.
The company has signed a new 10-year lease agreement for the resulting 180,000-square foot facility. Renovations will start this fall are likely to be completed by early 2020.
We observe that GoDaddy shares have rallied 25.8% year to date, outperforming the 20.2% rally of the industry it belongs to.
Flexible Workplace in Focus
We believe that the new move is part of GoDaddy's bid to develop a highly flexible workplace, capable of adapting to changing business needs on the one hand and serving local communities (through job creation and retention) on the other.
The company intends to strike a balance between fun and flexibility through infrastructure and architecture in its offices. GoDaddy's workplaces feature indoor slides, yoga rooms and peddle-kart race tracks to professionally operated food services. The renovation is expected to include this unique practice.
GoDaddy Inc. Revenue (TTM)
GoDaddy Inc. Revenue (TTM) | GoDaddy Inc. Quote
Gilbert's Economy Likely to Get a Boost
According to a report from Applied Economics, a consulting firm, continuation and expansion of operations on GoDaddy's part could generate an economic impact of $1.53 billion for Gilbert in the 10 years to come. The report also stated that continued operations will support approximately 1,788 jobs and create $80.5 million in annual personal income in Gilbert.
Wrapping Up
Expansion efforts in a particular region reflect that a company sees long-term potential, especially in terms of human resource that eventually drive the next phase of revenue growth.
It appears that this is exactly what's GoDaddy's management is thinking. According to GoDaddy's vice president of global real estate, Calvin Crowder, "We've found a wealth of talented, customer-focused employees here and it's worthwhile to invest in them and upgrade the facility."
Zacks Rank and Stocks to Consider
GoDaddy has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars. This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GoDaddy Inc. (GDDY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report GoDaddy Inc. (GDDY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. GoDaddy's workplaces feature indoor slides, yoga rooms and peddle-kart race tracks to professionally operated food services.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report GoDaddy Inc. (GDDY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. GoDaddy Inc. Revenue (TTM) GoDaddy Inc. Revenue (TTM) | GoDaddy Inc. Quote Gilbert's Economy Likely to Get a Boost According to a report from Applied Economics, a consulting firm, continuation and expansion of operations on GoDaddy's part could generate an economic impact of $1.53 billion for Gilbert in the 10 years to come.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report GoDaddy Inc. (GDDY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. GoDaddy Inc. Revenue (TTM) GoDaddy Inc. Revenue (TTM) | GoDaddy Inc. Quote Gilbert's Economy Likely to Get a Boost According to a report from Applied Economics, a consulting firm, continuation and expansion of operations on GoDaddy's part could generate an economic impact of $1.53 billion for Gilbert in the 10 years to come.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report GoDaddy Inc. (GDDY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today's Zacks #1 Rank stocks here .
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3b0638bb-28a2-44d9-8d98-5cd2fdb16732
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9776.0
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2017-09-07 00:00:00 UTC
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Verint Systems (VRNT) Q2 Earnings Top, Guidance Impresses
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AAOI
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https://www.nasdaq.com/articles/verint-systems-vrnt-q2-earnings-top-guidance-impresses-2017-09-07
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nan
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nan
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Verint Systems Inc.VRNT reported fiscal second-quarter 2018 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 47 cents and increased 7% year over year.
The company reported non-GAAP revenues of $278.2 million, which increased 5.3% from the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $270 million.
Management noted that first half fiscal 2018 revenues represented 48% of the full year outlook. This indicates that the company's operations and strategic initiatives are on the right track.
Verint Systems' stock has gained 26% year to date, substantially outperforming the 11.9% rally of the industry it belongs to.
Revenue Details
Verint's operations are divided into two segments, namely Customer Engagement and Cyber Intelligence.
Geographically, in the Americas, the company generated non-GAAP revenues of $144 million. Revenues from the EMEA were $85 million and that from APAC were $49 million. In the year-ago quarter, the company had generated $139 million in Americas, $82 million in EMEA and $43 million in APAC.
In the reported quarter, Customer Engagement non-GAAP revenues were $184 million, which increased 5% sequentially and 3% from the year-ago quarter on a constant currency basis.
The company is expanding its presence among existing customers as well as adding new ones on the back of a strong product suite. Verint is also investing to create an effective partner network for better integration of its offerings.
The company added organizations from the fields of telecommunications, insurance and automation to its customer base in the second quarter. Verint is also enriching its product portfolio inorganically by acquiring related companies.
Recently, the company's UK subsidiary announced the acquisition of workforce management software provider EG Solutions. Verint believes that this acquisition will be beneficial for its upcoming venture of providing solutions for back office customer engagement, which it plans to launch in the second half of the year.
The Cyber Intelligence segment generated non-GAAP revenues of $95 million in the quarter that grew 4% from the previous quarter and 12% year over year.
Management stated that continuous deal wins have aided segment revenues. Verint plans to launch web and social intelligence products that will involve real-time data collection and analysis. These will help to identify abnormal behavior of the system and generate predictive solutions.
The company is working on a new range of products based on customer feedback and management believes this range will be beneficial for the company's top line going forward.
Verint Systems Inc. Price, Consensus and EPS Surprise
Verint Systems Inc. Price, Consensus and EPS Surprise | Verint Systems Inc. Quote
Margin Details
Non-GAAP gross margin decreased 110 basis points (bps) year on year to 64.5%. The decline in the figure can be attributed to the company's product, services and revenue mix within its cross segments, per management. Unfavorable mix of hardware, software and services from third party vendors included in the cyber intelligence segment was cited as another reason for fluctuating margins.
Non-GAAP operating margin declined 190 bps from the year-ago quarter to 16.4%. Increased spending in research and development pertaining to a surge in demand from the security market primarily resulted in the decline in operating margin.
Balance Sheet and Cash Flow
Cash and cash equivalents for the six months ending Jul 31, 2017 was $365.14 million compared with $340.12 million for the six months ending Jul 31, 2016.
Net cash from operations was $98.51 million for six months ending Jul 31, 2017 and that for the six months ending Jul 31, 2016 was $69.3 million.
Guidance
For fiscal third quarter 2018, management expects revenues to be in the range of $280 to $285 million. Expenses are anticipated to be more or less the same as in the second quarter.
For fiscal 2018, revenues are expected to be $1.14 billion (+/-2%). Non-GAAP earnings per share are projected to be around $2.75, up by 5 cents from the previous guidance.
Zacks Rank and Stocks to Consider
Verint has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars. This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Verint Systems Inc. (VRNT): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Verint Systems Inc. (VRNT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Verint believes that this acquisition will be beneficial for its upcoming venture of providing solutions for back office customer engagement, which it plans to launch in the second half of the year.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Verint Systems Inc. (VRNT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Verint Systems Inc. Price, Consensus and EPS Surprise Verint Systems Inc. Price, Consensus and EPS Surprise | Verint Systems Inc. Quote Margin Details Non-GAAP gross margin decreased 110 basis points (bps) year on year to 64.5%.
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Click to get this free report Verint Systems Inc. (VRNT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). The Cyber Intelligence segment generated non-GAAP revenues of $95 million in the quarter that grew 4% from the previous quarter and 12% year over year.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Verint Systems Inc. (VRNT): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. The Cyber Intelligence segment generated non-GAAP revenues of $95 million in the quarter that grew 4% from the previous quarter and 12% year over year.
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184a0889-fe34-4ca9-a512-68b841f4b11a
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9777.0
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2017-09-07 00:00:00 UTC
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Top Ranked Growth Stocks to Buy for September 7th
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AAOI
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https://www.nasdaq.com/articles/top-ranked-growth-stocks-to-buy-for-september-7th-2017-09-07
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nan
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nan
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Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, September 7th:
LogMeIn, Inc. (LOGM): This cloud-based services provider, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days.
LogMein, Inc. Price and Consensus
LogMein, Inc. Price and Consensus | LogMein, Inc. Quote
LogMeIn has a PEG ratio 1.60, compared with 2.25 for the industry. The company possesses a Growth Score of A.
LogMein, Inc. PEG Ratio (TTM)
LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote
Superior Uniform Group, Inc. (SGC): This apparel company, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 1.7% over the last 60 days.
Superior Uniform Group, Inc. Price and Consensus
Superior Uniform Group, Inc. Price and Consensus | Superior Uniform Group, Inc. Quote
Superior Uniform Group has a PEG ratio 1.38, compared with 2.07 for the industry. The company possesses a Growth Score of A.
Superior Uniform Group, Inc. PEG Ratio (TTM)
Superior Uniform Group, Inc. PEG Ratio (TTM) | Superior Uniform Group, Inc. Quote
Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products designer, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.6% over the last 60 days.
Applied Optoelectronics, Inc. Price and Consensus
Applied Optoelectronics, Inc. Price and Consensus | Applied Optoelectronics, Inc. Quote
Applied Optoelectronics has a PEG ratio 0.60, compared with 11.49 for the industry. The company possesses a Growth Score of A.
Applied Optoelectronics, Inc. PEG Ratio (TTM)
Applied Optoelectronics, Inc. PEG Ratio (TTM) | Applied Optoelectronics, Inc. Quote
Restoration Hardware Holdings Inc. (RH): This retailer in the home furnishings market, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 10.9% over the last 60 days.
Restoration Hardware Holdings Inc. Price and Consensus
Restoration Hardware Holdings Inc. Price and Consensus | Restoration Hardware Holdings Inc. Quote
Restoration Hardware Holdings has a PEG ratio 0.82, compared with 1.29 for the industry. The company possesses a Growth Score of A.
Restoration Hardware Holdings Inc. PEG Ratio (TTM)
Restoration Hardware Holdings Inc. PEG Ratio (TTM) | Restoration Hardware Holdings Inc. Quote
See the full list of top ranked stocks here
Learn more about the Growth score and how it is calculated here .
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Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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Superior Uniform Group, Inc. (SGC): Free Stock Analysis Report
Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report
LogMein, Inc. (LOGM): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Superior Uniform Group, Inc. PEG Ratio (TTM) Superior Uniform Group, Inc. PEG Ratio (TTM) | Superior Uniform Group, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products designer, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.6% over the last 60 days. Click to get this free report Superior Uniform Group, Inc. (SGC): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, September 7th: LogMeIn, Inc. (LOGM): This cloud-based services provider, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 days.
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Superior Uniform Group, Inc. PEG Ratio (TTM) Superior Uniform Group, Inc. PEG Ratio (TTM) | Superior Uniform Group, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products designer, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.6% over the last 60 days. Click to get this free report Superior Uniform Group, Inc. (SGC): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Superior Uniform Group, Inc. (SGC): This apparel company, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 1.7% over the last 60 days.
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Superior Uniform Group, Inc. PEG Ratio (TTM) Superior Uniform Group, Inc. PEG Ratio (TTM) | Superior Uniform Group, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products designer, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.6% over the last 60 days. Click to get this free report Superior Uniform Group, Inc. (SGC): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Superior Uniform Group, Inc. (SGC): This apparel company, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 1.7% over the last 60 days.
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Superior Uniform Group, Inc. PEG Ratio (TTM) Superior Uniform Group, Inc. PEG Ratio (TTM) | Superior Uniform Group, Inc. Quote Applied Optoelectronics, Inc. (AAOI): This fiber-optic networking products designer, which carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.6% over the last 60 days. Click to get this free report Superior Uniform Group, Inc. (SGC): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report LogMein, Inc. (LOGM): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Growth Score of A. LogMein, Inc. PEG Ratio (TTM) LogMein, Inc. PEG Ratio (TTM) | LogMein, Inc. Quote Superior Uniform Group, Inc. (SGC): This apparel company, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings advancing 1.7% over the last 60 days.
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738d2583-94cd-40fb-8256-e6c6f567e49c
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9778.0
|
2017-09-07 00:00:00 UTC
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Pitney Bowes to Boost e-Commerce Business With Newgistics Buy
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AAOI
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https://www.nasdaq.com/articles/pitney-bowes-to-boost-e-commerce-business-with-newgistics-buy-2017-09-07
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nan
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nan
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Premium e-Commerce solutions provider, Pitney Bowes Inc.PBI recently announced that it has signed a definitive agreement to purchase Newgistics, Inc. The acquisition will aid Pitney Bowes expand its range of e-Commerce and parcel management solutions for retailers, small & medium businesses, and enterprise clients.
Per the terms of the deal, Pitney Bowes will buy all shares of Newgistics for about $475 million. The deal is anticipated to conclude by late third or early fourth quarter, subject to customary closing conditions.
Newgistics provides a wide range of e-Commerce solutions and is famed for its returns-processing capabilities. The acquisition will augment Pitney Bowes' digital e-Commerce and parcel service capabilities. It will also add to the company's physical capabilities including a national network of Presort Services Operating Centers and facilitate enterprise retail cross-border expansion.
The buyout is also in sync with Pitney Bowes' strategy to offer proven, capable and scalable end-to-end Global e-Commerce solution.
Further, the company announced opened a new Presort Services Operating Center in Huntington Beach, CA to enhance its presence in the U.S. domestic parcels space.
Our Take
During first-quarter 2017, the company's Digital Commerce Solutions reported 9% year-over-year growth in sales to $166 million, driven by strong Global e-Commerce business (up 17%). The previously concluded buyout of Borderfree has complemented its e-Commerce business and has also contributed toward the overall capacity mix by providing best-in-class capabilities and fortifying portfolio. The company is also working to expand opportunities for the U.S. retailers by accessing consumer markets in China and India. Overall, the Digital Commerce Solutions is anticipated to be a key growth driver in the long haul.
Further, the company anticipates Shipping business to be its next big catalyst. In the past few years, Parcel volume has shot up 48% globally and is expected to grow another 17-28% between by 2021. Newgistics' parcel service capabilities will serve to strengthen Pitney Bowes' foothold in the shipping and sending market, while enabling it to capitalize on a burgeoning market.
However, the shares of this company have had a disappointing run on the bourse in the last six months. Its shares have declined 3.8%, against the industry 's gain of 4.9%.
Moreover, the company's softness in the North American mailing business is yet to subside completely. During second-quarter 2017, Small and Medium Business Solutions revenues dipped 3% year over year to $436.4 million. Additionally, decline in recurring revenues and poor equipment sales proved to be a drag on the International Mailing Business. Uncertain global economic environment is expected to impact production mail and software businesses in the near term, consequently limiting growth momentum.
In light of these headwinds, the company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks from the same space are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and Axcelis Technologies, Inc. ACLS . While Applied Optoelectronics and Arista Networks sport a Zacks Rank #1 (Strong Buy), Axcelis Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Optoelectronics has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 17.9%.
Arista Networks has outpaced estimates in the preceding four quarters, with an average earnings surprise of 22.8%.
Axcelis Technologies has surpassed estimates in three of the trailing four quarters, with an average positive earnings surprise of 35.0%.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Pitney Bowes Inc. (PBI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Some better-ranked stocks from the same space are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and Axcelis Technologies, Inc. ACLS . Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report To read this article on Zacks.com click here. The acquisition will aid Pitney Bowes expand its range of e-Commerce and parcel management solutions for retailers, small & medium businesses, and enterprise clients.
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Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the same space are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and Axcelis Technologies, Inc. ACLS . Our Take During first-quarter 2017, the company's Digital Commerce Solutions reported 9% year-over-year growth in sales to $166 million, driven by strong Global e-Commerce business (up 17%).
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Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the same space are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and Axcelis Technologies, Inc. ACLS . Our Take During first-quarter 2017, the company's Digital Commerce Solutions reported 9% year-over-year growth in sales to $166 million, driven by strong Global e-Commerce business (up 17%).
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Stocks to Consider Some better-ranked stocks from the same space are Applied Optoelectronics, Inc. AAOI , Arista Networks, Inc. ANET and Axcelis Technologies, Inc. ACLS . Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Pitney Bowes Inc. (PBI): Free Stock Analysis Report To read this article on Zacks.com click here. Per the terms of the deal, Pitney Bowes will buy all shares of Newgistics for about $475 million.
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04ad76b5-1e65-409c-b137-5f7d0793b95d
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9779.0
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2017-09-06 00:00:00 UTC
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Juniper Networks to Acquire Cybersecurity Specialist Cyphort
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AAOI
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https://www.nasdaq.com/articles/juniper-networks-to-acquire-cybersecurity-specialist-cyphort-2017-09-06
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nan
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nan
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Juniper Networks, Inc.JNPR recently announced that it intends to acquire Cyphort, a software security company. The deal, which is subject to customary conditions, is expected to be wrapped up in a month.
The acquisition is anticipated to expand the coverage of Juniper's flagship security solution, Sky Advanced Threat Prevention. It will equip it with features that are in sync with cloud as well as on premises infrastructure.
Cyphort is a provider of threat detection and security analytics. Its products are used by large to mid-size enterprises for enhancing their security metrics. With the addition of Cyphort's product portfolio, Juniper expects its software and networking security product suite to become more efficient and add to its customer base and revenues.
Juniper stock has lost 2.9% year to date, outperforming the 5.1% decline of the industry it belongs to.
Juniper's Cybersecurity Efforts
Notably, Juniper's Software Defined Secure networks (SDSN) is a prominent name in the industry, more so after the security enhancements made in the second quarter of 2017.
The company's recent introduction of Contrail Security that ensures security of applications that are deployed in volume-loaded heterogeneous cloud-based environments is a positive.
Juniper Networks, Inc. Revenue (TTM)
Juniper Networks, Inc. Revenue (TTM) | Juniper Networks, Inc. Quote
We believe that in a scenario where cyber-attacks like WannaCry and Petya caused major Internet outages in a span of a month, demand for cybersecurity solutions will increase manifold. Per MarketsandMarkets, the cybersecurity market is expected to reach $231.94 billion by 2022 from $137.85 billion in 2017, at a CAGR of 11%.
Thus, Juniper's acquisition of Cyphort comes at an opportune time. However, increasing competition from Cisco CSCO post its acquisition of cyber-security solutions provider Sourcefire is a major headwind for Juniper.
Nevertheless, Juniper's enhanced security portfolio, the accelerated adoption of its cloud-based products (particularly in data center), growing demand for its switching product (the QFX line) and the recently unveiled Cloud-Grade networking that includes telemetry, automation and machine learning abilities, are anticipated to boost its top line in the near term.
Zacks Rank and Key Picks
Juniper Networks currently has a Zacks Rank #2 (Buy).
Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank Stocks here.
The long-term earnings growth for Applied Optoelectronics and Applied Materials is projected to be 17.5% and 17.1% respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Juniper Networks, Inc. (JNPR): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. The acquisition is anticipated to expand the coverage of Juniper's flagship security solution, Sky Advanced Threat Prevention.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , both sporting a Zacks Rank #1 (Strong Buy). With the addition of Cyphort's product portfolio, Juniper expects its software and networking security product suite to become more efficient and add to its customer base and revenues.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , both sporting a Zacks Rank #1 (Strong Buy). Juniper's Cybersecurity Efforts Notably, Juniper's Software Defined Secure networks (SDSN) is a prominent name in the industry, more so after the security enhancements made in the second quarter of 2017.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , both sporting a Zacks Rank #1 (Strong Buy). Juniper's Cybersecurity Efforts Notably, Juniper's Software Defined Secure networks (SDSN) is a prominent name in the industry, more so after the security enhancements made in the second quarter of 2017.
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c54da93c-62ab-4633-853a-fbfe35b50025
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9780.0
|
2017-09-06 00:00:00 UTC
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Google Partners Xiaomi to Bring Android One Back to India
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AAOI
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https://www.nasdaq.com/articles/google-partners-xiaomi-to-bring-android-one-back-to-india-2017-09-06
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nan
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nan
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Alphabet Inc. 's GOOGL Google has collaborated with China's Xiaomi to revive its Android One program in India. Android One powers Xiaomi Mi A1, a new $234 (14,999 rupees) handset that was launched in the country yesterday.
Google Global Director of Android Partner Programmes, Jon Gold told reporters that, "I would not consider this a reboot... we have been working in this direction now for a couple of years just a little bit more quietly."
Alphabet shares have rallied 16.5% over the last year, outperforming the 12.7% gain of the industry it belongs to.
A Strategic Change
Google introduced the program in India in 2014 to make high-quality budget smartphones available to as many people as possible in developing economies. Under this initiative, Google designed the budget hardware while local companies like Micromax, Spice and Karbonn manufactured it. All devices were priced below $110 (7,000 rupees).
But very few devices were launched leading to speculations that Google will do away with the program. The attempt was apparently a failure due to availability of phones with better specifications in that price range.
However, Google appears to have solved this problem by shifting focus to a phone that is at a comparatively higher price point and loaded with nice specifications. The Mi A1 is Xiaomi's first dual-rear camera phone that features 12 MP wide angle camera and a 12 MP telephoto camera.
Alphabet Inc. Net Income (TTM)
Alphabet Inc. Net Income (TTM) | Alphabet Inc. Quote
It comes with a full metal body, 5.5-inch, full HD display, 4GB RAM, 64GB internal memory (expandable up to 128 GB), octa-core Snapdragon 625 processor, 5MP front camera and 3,080 mAh battery.
Google is offering the stock Android along with some pre-installed software including Google Photos and Google Assistant. Frequent updates will be there with Android Oreo expected before the year end and Android P in the future.
Again, Xiaomi is one of the world's top five smartphone companies and ranks second in India. It appears that Google is banking on Xiaomi's success to expand its market share and Android user base.
The Android Advantage
Google is pushing Android to multiple markets (low, mid and high range smartphone users). Not only does it help the company to build search market share but also to drive sales of apps and digital products through Google Play.
The move is also part of the company's bid to improve advertising tools by facilitating the linking of search results with apps as well as deep linking between apps. The company connects advertising campaigns across mobile and desktop platforms and that boosts advertisers' return on investment.
Mobile app indexing and Mobile Friendly algorithm change will improve user experience and thus drive the next phase of revenue growth.
Zacks Rank and Stocks to Consider
Alphabet has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without . More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Google Global Director of Android Partner Programmes, Jon Gold told reporters that, "I would not consider this a reboot... we have been working in this direction now for a couple of years just a little bit more quietly."
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc. Net Income (TTM) Alphabet Inc. Net Income (TTM) | Alphabet Inc. Quote It comes with a full metal body, 5.5-inch, full HD display, 4GB RAM, 64GB internal memory (expandable up to 128 GB), octa-core Snapdragon 625 processor, 5MP front camera and 3,080 mAh battery.
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Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Alphabet Inc. 's GOOGL Google has collaborated with China's Xiaomi to revive its Android One program in India.
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Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Alphabet Inc. 's GOOGL Google has collaborated with China's Xiaomi to revive its Android One program in India.
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d2ce489a-4263-4d6c-8a2e-5298a4c1cfc3
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9781.0
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2017-09-06 00:00:00 UTC
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Arrow (EQIX) Announces Pricing of Senior Notes Worth $500M
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AAOI
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https://www.nasdaq.com/articles/arrow-eqix-announces-pricing-of-senior-notes-worth-%24500m-2017-09-06
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nan
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nan
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Arrow Electronics Inc.ARW recently commenced an offering of senior unsecured notes worth $500 million. The offering carries an interest rate of 3.250%, with maturity due in 2024. The company expects the offering to be completed by Sep 8, 2017, upon the fulfilment of certain customary conditions.
Arrow Electronics filed for registration with the U.S. Securities and Exchange Commission. Book-running managers currently acting for this notes offering include Merrill Lynch, Pierce, Fenner & Smith Incorporated, along with certain other lenders.
The company's share price movement has been much impressive since the beginning of this year. Year to date, its shares have gained 8.4%, while the industry incurred a loss of 8.5%.
Proceeds from the Offering
The raised amount will enable Arrow Electronics to pay back its notes scheduled in 2018 and carry an interest rate of 3%. The fund will help it to increase fund availability and invest in short-term interest-bearing accounts and securities.
The remaining net proceeds from the transaction will be used for general corporate purposes including acquisitions and repayment of debts.
Fundamentals Driving Growth
Arrow Electronics' core strength in providing best-in-class services and easy-to-acquire technologies are anticipated to positively impact the top line in the long run. The company has secured significant market share through its broad portfolio of products and services, which include ArrowSphere, UC in the Cloud solutions, engineering design capabilities and remote infrastructure-management (Live Virtual Help Desk) services.
The company's continuous efforts to maximize consumer satisfaction have resulted in original equipment manufacturers, contract manufacturers and commercial customers selecting Arrow's distribution channels for marketing products.
Additionally, Arrow Electronics' persistent acquisitions enable it to enter markets, diversify and broaden product portfolio along with maintaining its leading position, thereby significantly contributing to the revenue stream. Incremental sales from strategic acquisitions such as Computerlinks are anticipated to boost the top line.
It is worth mentioning that, Arrow Electronics exited second-quarter 2017 with $521.6 million in cash and cash equivalents compared with $419.9 million in the previous quarter. Long-term debt (including current portion) was $3.07 billion compared with $2.46 billion at the end of the previous quarter. During the quarter, the company had negative operating cash flow of $112.2 million. Further, it spent $54.8 million for share repurchases during the quarter.
In the stringent regulatory landscape, this offering is expected to enhance the company's balance sheet and support future growth. Additionally, it will also assist Arrow Electronics to bring down capital expenditures.
Zacks Rank & Key Picks
Currently, Arrow Electronics carries a Zacks Rank #3 (Hold).
Some top-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI , Micron Technology, Inc. MU and Broadridge Financial Solutions, Inc. BR , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some top-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI , Micron Technology, Inc. MU and Broadridge Financial Solutions, Inc. BR , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Fundamentals Driving Growth Arrow Electronics' core strength in providing best-in-class services and easy-to-acquire technologies are anticipated to positively impact the top line in the long run.
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Some top-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI , Micron Technology, Inc. MU and Broadridge Financial Solutions, Inc. BR , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank & Key Picks Currently, Arrow Electronics carries a Zacks Rank #3 (Hold).
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Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Some top-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI , Micron Technology, Inc. MU and Broadridge Financial Solutions, Inc. BR , all sporting a Zacks Rank #1 (Strong Buy). It is worth mentioning that, Arrow Electronics exited second-quarter 2017 with $521.6 million in cash and cash equivalents compared with $419.9 million in the previous quarter.
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Some top-ranked stocks worth considering are Applied Optoelectronics, Inc. AAOI , Micron Technology, Inc. MU and Broadridge Financial Solutions, Inc. BR , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report To read this article on Zacks.com click here. Further, it spent $54.8 million for share repurchases during the quarter.
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bbb16159-84e3-4c58-adcd-c43ffc296d08
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9782.0
|
2017-09-06 00:00:00 UTC
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Semiconductor Manufacturing (SMI) in Focus: Stock Moves 7.2% Higher
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AAOI
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https://www.nasdaq.com/articles/semiconductor-manufacturing-smi-in-focus%3A-stock-moves-7.2-higher-2017-09-06
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nan
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nan
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Semiconductor Manufacturing International CorporationSMI was a big mover last session, as the company saw its shares rise more than 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This reverses the recent trend for the company-as the stock is now down 7.1% in the past one-month time frame.
The company has seen one negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current year has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.
Semiconductor Manufacturing currently has a Zacks Rank #4 (Sell) while its Earnings ESP is 0.00%.
Semiconductor Manufacturing International Corporation Price
Semiconductor Manufacturing International Corporation Price | Semiconductor Manufacturing International Corporation Quote
A better-ranked stock in the Electronics - Semiconductors industry is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Is SMI going up? Or down? Predict to see what others think: Up or Down
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without . More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Semiconductor Manufacturing International Corporation (SMI): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Semiconductor Manufacturing International Corporation Price Semiconductor Manufacturing International Corporation Price | Semiconductor Manufacturing International Corporation Quote A better-ranked stock in the Electronics - Semiconductors industry is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Semiconductor Manufacturing International Corporation (SMI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Semiconductor Manufacturing International CorporationSMI was a big mover last session, as the company saw its shares rise more than 7% on the day.
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Semiconductor Manufacturing International Corporation Price Semiconductor Manufacturing International Corporation Price | Semiconductor Manufacturing International Corporation Quote A better-ranked stock in the Electronics - Semiconductors industry is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Semiconductor Manufacturing International Corporation (SMI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today's Zacks #1 Rank stocks here .
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Semiconductor Manufacturing International Corporation Price Semiconductor Manufacturing International Corporation Price | Semiconductor Manufacturing International Corporation Quote A better-ranked stock in the Electronics - Semiconductors industry is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Click to get this free report Semiconductor Manufacturing International Corporation (SMI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Predict to see what others think: Up or Down 4 Surprising Tech Stocks to Keep an Eye On Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough.
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Click to get this free report Semiconductor Manufacturing International Corporation (SMI): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Semiconductor Manufacturing International Corporation Price Semiconductor Manufacturing International Corporation Price | Semiconductor Manufacturing International Corporation Quote A better-ranked stock in the Electronics - Semiconductors industry is Applied Optoelectronics, Inc. AAOI , which currently carries a Zacks Rank #1 (Strong Buy). Semiconductor Manufacturing International CorporationSMI was a big mover last session, as the company saw its shares rise more than 7% on the day.
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2581eebf-b005-41fb-a29c-95b25a5bca23
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9783.0
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2017-09-05 00:00:00 UTC
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Palo Alto Networks (PANW) Up 10.5%: Can the Rally Continue?
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AAOI
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https://www.nasdaq.com/articles/palo-alto-networks-panw-up-10.5%3A-can-the-rally-continue-2017-09-05
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nan
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nan
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Palo Alto Networks, Inc.PANW shares have gained nearly 10.5% in yesterday's trading session, outperforming the market.
In the past three months, its shares have gained 5.4%, against the industry 's decline of 1.7%.
Will the recent momentum sustain the long haul or is it due for a pullback? Before we discuss how investors and analysts have reacted of late, let's take a quick look at the fundamentals and recent trends in order to get a better hold on the catalysts.
Stellar Q4 Results
Palo Alto Networks reported better-than-expected fourth-quarter fiscal 2017 results. The company reported adjusted earnings per share (excluding stock-based compensation, amortization and other one-time items) of 92 cents, surpassing the Zacks Consensus Estimate of 79 cents.
The company's revenues of $509.1 million surged 27% year over year and outpaced the Zacks Consensus Estimate of $487 million. The quarterly revenues came above the guided range of $481-$491 million. The year-over-year increase was primarily due to new customer addition along with latest product launches. During the quarter, it added around 3,000 new customers. Total customer base for fiscal 2017 grew to more than 42,500.
Positive View
The company provided an encouraging first-quarter and fiscal 2018 outlook. For first-quarter fiscal 2018, Palo Alto Networks expects revenues in a range of $482-$492 million, up 21-24% year over year. The Zacks Consensus Estimate was pegged at $485.3 million. The company expects non-GAAP earnings per share within 67-69 cents. The Zacks Consensus Estimate was pegged at 69 cents.
For fiscal 2018, the company anticipates revenue to be in the range of $2.125-$2.165 billion, an increase of 21-23% year over year. The Zacks Consensus Estimate is pegged at $2.12 billion. The company expects non-GAAP earnings per share within $3.24-$3.34 (mid-point $3.29 per share). The Zacks Consensus Estimate is pegged at $3.25 per share.
Other Growth Drivers
Palo Alto Networks and VMware, Inc. VMW recently announced the expansion of strategic relationships to address cloud security needs of the latter's customers. Per the agreement, Palo Alto Networks' Next-Generation Security Platform will now be available to customers of VMware Cloud on Amazon's AMZN cloud computing wing, Amazon Web Services (AWS).
Through the new collaboration, Palo Alto Networks will combine its security platform with VMware's software platform, which provides private cloud-based service to make the cloud-computing environment more secure, simple, flexible, and efficient. As VMware remains one of the leading companies in the virtualization and cloud computing space, we believe Palo Alto Networks will gain significantly from this collaboration.
Due to the rapid adoption of cloud computing technologies, security and prevention of data loss have become the top priorities for enterprises in recent times. Per Gartner's new report, worldwide spending on IT security will reach $101 billion in 2018 from $75 billion recorded in 2015.
Palo Alto Networks' innovative product portfolio is well positioned to benefit from this significant growth over the long run. We believe the interoperability of the company's Next-Generation Security Platform will help customers accelerate transition to the cloud.
How have estimates been moving since then?
Analysts were quiet during the last one month as none of them issued any earnings estimate revisions.
Style Scores Look Great
Palo Alto Networks currently sports an A grade for Growth, lifting its overall VGM score to B.
Valuation
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 45.0x, significantly lower than the industry average of 95.4x. The ratio, which is obtained by dividing a stock's current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Consequently, lower the P/E of a stock, the better for investors.
Outlook
The consensus estimate has been stable in the last 30 days. Notably, the stock has a Zacks Rank #3 (Hold). Additionally, the stock has long-term earnings per share growth rate of 24.6%.
Bottom Line
In our opinion, the stock deserves a place in investor's portfolio and we are expecting an impressive return from the stock in the next few months.
A better-ranked stock worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
Vmware, Inc. (VMW): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A better-ranked stock worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Other Growth Drivers Palo Alto Networks and VMware, Inc. VMW recently announced the expansion of strategic relationships to address cloud security needs of the latter's customers.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). For first-quarter fiscal 2018, Palo Alto Networks expects revenues in a range of $482-$492 million, up 21-24% year over year.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). The company reported adjusted earnings per share (excluding stock-based compensation, amortization and other one-time items) of 92 cents, surpassing the Zacks Consensus Estimate of 79 cents.
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A better-ranked stock worth considering is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate is pegged at $3.25 per share.
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432b9d36-ae1b-4aef-a525-5d740d6b69a8
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9784.0
|
2017-09-05 00:00:00 UTC
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Alphabet Completes Restructuring, Forms New Holding Company
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AAOI
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https://www.nasdaq.com/articles/alphabet-completes-restructuring-forms-new-holding-company-2017-09-05
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nan
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nan
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Alphabet Inc.GOOGL recently announced completion of its reorganization and formation of a new company, XXVI Holdings Inc. The unique name signifies 26 expressed in Roman numerals, the number of letters in the English alphabet.
Alphabet is now officially a corporate parent and Google and Other Bets are its subsidiaries. Other Bets includes Google Venture, Google Fiber, Waymo, Verily, Calico and Nest, which were previously under Google. Google will now become a limited liability company (LLC) from a corporation. XXVI will own equity of each Alphabet subsidiary.
A filing on Friday with the Federal Communications Commission disclosed the new structure. It stated that Alphabet and Google are now in a position to function in a more efficient, economical and transparent manner with a better focus on revenue generation.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote
An Alphabet spokesperson Gina Weakley stated, "We're updating our corporate structure to implement the changes we announced with the creation of Alphabet in 2015."
Alphabet shares have rallied 17.8% over the last year, outperforming the 14.1% gain of the industry it belongs to.
The Rationale
With the reorganization, Alphabet officially puts each of its units to a separate company under its umbrella. The purpose is to allot independent operating heads (CEOs) to manage each unit. This will lead to better operating efficiency and help the nascent businesses to achieve commercialization and profits.
The change will help the company improve accountability and better manage different areas. It prevents potential risks or challenges from spreading from one business to another. The separation also helps limit exposure of different obligations of an LLC.
Zacks Rank and Stocks to Consider
Alphabet has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc.GOOGL recently announced completion of its reorganization and formation of a new company, XXVI Holdings Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc. Revenue (TTM) Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote An Alphabet spokesperson Gina Weakley stated, "We're updating our corporate structure to implement the changes we announced with the creation of Alphabet in 2015."
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Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Alphabet Inc. Revenue (TTM) Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote An Alphabet spokesperson Gina Weakley stated, "We're updating our corporate structure to implement the changes we announced with the creation of Alphabet in 2015."
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet is now officially a corporate parent and Google and Other Bets are its subsidiaries.
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66926267-7195-45e0-bf63-49d14d2982f3
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9785.0
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2017-09-05 00:00:00 UTC
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Does Apple Need to Offer Freebies to Justify iPhone 8 Price?
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AAOI
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https://www.nasdaq.com/articles/does-apple-need-to-offer-freebies-to-justify-iphone-8-price-2017-09-05
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nan
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nan
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The buzz surrounding Apple Inc 's AAPL iPhone 8 is growing louder as we approach its big event to be held on Sep 12, 2017.
Apple is expected to unveil the latest iPhone to mark its tenth anniversary. It will be a huge leap in terms of innovation with features likea glass body, a dual curved edge-to-edge OLED (organic light-emitting diode) display with wireless charging (USB-C) and higher storage options. The camera is likely to be far better than its predecessors.
OLED display is being increasingly adopted as it comes with improved brightness, contrast and efficiency compared with LCD or Plasma displays. Television sets have long been equipped with OLED displays. Smartphones are also catching up fast.Per reports, the company has ordered nearly 100 million OLED screens from Samsung Electronics.
Apple Inc. Price
Apple Inc. Price | Apple Inc. Quote
There are humongous expectations from the iPhone 8 cycle. However, it is the price point that is seen as a potential threat to iPhone 8's sales. Reportedly, iPhone 8 could be priced more than $1,000 dollars. Many analysts observe that consumers may not be willing to spend that much amount on a phone whose features aren't exactly exclusive. For instance, Samsung phones have OLED display and wireless charging options.
However, an analyst with Barclays observed that providing freebies with iPhone 8 could make the $1000 tag more reasonable. Per a survey conducted, Barclays' analyst points out that if the average selling price (ASP) drops to $800 from $1000, users' buying intention will double from 18% to 36%.
Survey shows that if Apple could include a one-year free subscription to Apple Music and iCloud storage, which otherwise costs about $156, iPhone 8 sales may increase to 64 million in 2018. Currently, without the freebies, the sales figure is lower by 24 million.
However, another analyst has observed that though the idea of providing freebies isn't crazy but with Apple, it might simply not be possible.
He argues that demand for a new iPhone has always been "off the charts". A redesigned iPhone 8 will simply do not have dearth of buyers.
More importantly, giving out freebies is just not Apple's business model. It thrives on selling "premium products at premium prices". Therefore, Apple bundling services to boost iPhone 8 is just not possible, adds the analyst.
The debate over the exorbitant price has been raging on for some time now. iPhone 7 and 7 Plus editions with 256GB storage carry price tags of $849 and $969, respectively. So a price tag north of $1000 should not be considered unreasonable for a fully redesigned OLED iPhone 8.
iPhone (4GB model) was priced at $499 way back in 2007, which was unheard of back then. Yet, Apple scored a home run with the device. The power of Apple's fan base cannot be undermined.
Zacks Rank and Share Price Movement
At present, Apple carries a Zacks Rank #3 (Hold).
Notably, the company has outperformed the industry in the past one year. Shares of Apple have surged 52.3% compared with the industry's 50.7% increase.
Stocks to Consider
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively .
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. The buzz surrounding Apple Inc 's AAPL iPhone 8 is growing louder as we approach its big event to be held on Sep 12, 2017.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Apple Inc. Price Apple Inc. Price | Apple Inc. Quote There are humongous expectations from the iPhone 8 cycle.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. For instance, Samsung phones have OLED display and wireless charging options.
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8391f56e-0556-404f-a4f9-38c84a9f39f2
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9786.0
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2017-09-01 00:00:00 UTC
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Ambarella (AMBA) Q2 Earnings Top, Shares Down on Tepid View
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AAOI
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https://www.nasdaq.com/articles/ambarella-amba-q2-earnings-top-shares-down-on-tepid-view-2017-09-01
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nan
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nan
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Continuing its earnings streak alive for the ninth time in a row, Ambarella Inc.AMBA reported better-than-expected results for second-quarter fiscal 2018. Notably, though revenues marked a significant year-over-year improvement, earnings witnessed a decline.
The company reported earnings of 48 cents per share, which came ahead of the Zacks Consensus Estimate of 45 cents. However, on a year-over-year basis, earnings declined 11.1%. The year-over-year decline came mainly due to elevated cost of goods sold, which more than offset the benefit of strong revenue growth.
Following the earnings release, the company's shares descended over 9% in the after-hours trade. This may be due to the year-over-year decline in bottom-line results, as well as a disappointing outlook for the forthcoming quarter and fiscal 2018.
Notably, Ambarella's shares have underperformed the industry to which it belongs to in the year-to-date period. The stock has been up just 0.5% in the said period, while the industry returned 26.6%.
Quarter in Detail
The fiscal second-quarter revenues increased 10% year over year to $71.6 million, surpassing the Zacks Consensus Estimate of $71 million. Excluding sales to GoPro Inc. GPRO and OEMs, revenues increased 16.3% to $67.9 million.
The solid year-over-year growth was primarily fueled by strong performances in the IP security, auto and non-GoPro wearable markets. The benefits at these markets were partially offset by decline in drone and GoPro sports cameras revenues.
On a non-GAAP basis, the company reported gross margin of 63%, which came in 410 basis points (bps) lower than the year-ago quarter. The contraction in gross margin was mainly due to growth in revenues from sale of lower margin professional security products in China.
Non-GAAP operating expenses came in at $25.4 million, up from $23 million incurred in second-quarter fiscal 2017. However, non-GAAP operating expenses came below the company's previously guided range of $26-$27.5 million mainly due to lower-than-expected increase in headcounts.
Non-GAAP operating income descended to $19.7 million from $20.7 million reported in the year-ago quarter. Operating margin contracted 420 bps to 27.6% in the reported quarter mainly due to reduced gross margin.
Ambarella, Inc. Price, Consensus and EPS Surprise
Ambarella, Inc. Price, Consensus and EPS Surprise | Ambarella, Inc. Quote
Balance Sheet
Ambarella ended the fiscal second quarter with cash and cash equivalents & marketable securities of $400.1 million, down from $420.2 million in the previous quarter.
During the reported quarter, the company bought back 595,770 shares, for a total cash consideration of $29.9 million. Of these shares, 551,351 were purchased under the company's previous $75-million share repurchase program, which started in June 2016. The remaining shares were bought back under the newly commenced $50-million repurchase program, which commenced on Jul 1, 2017.
Guidance
For third-quarter fiscal 2018, revenues are expected to be between $87.5 million and $90.5 million (mid-point $89 million), down 10-12.9% from the year-earlier quarter. The guidance at the mid-point also fell short of the Zacks Consensus Estimate of $89.35 million.
The company noted that a "substantial decline in GoPro revenues and a moderate decline in the drone market" would adversely affect its forthcoming quarter's top-line performance. However, Ambarella anticipates strong year-over-year revenue growth in IP security (both professional and consumer), as well as solid growth in automotive and non-sports wearable.
Non-GoPro revenues in the fiscal third quarter are likely to grow between 4.9% and 9.4%. Notably, the guided range is also significantly lower than the previous two quarters' growth rate of over 16%.
Non-GAAP gross margin is expected to be between 62.0% and 63.5%, as compared with 66.3% recorded in the year-ago quarter. The contraction will be due to increase in China security revenues and decline in drone revenues.
Operating expenses are expected to be between $28.0 million and $29.5 million, up sequentially due to escalation in new chip development costs resulting from commencement of developing two additional 10-nm CV chips, which includes ASO qualified chip for the auto OEM market.
Management lowered its forecasts for fiscal 2018. The company now expects revenues to decline in the range of 3-7%, down from the previous guidance of up 3% to down 3%. The downbeat guidance came mainly due to a possible decline in the drone market, slower-than-expected growth in the new virtual reality market and shortage of memory components which may mar the demand for Ambarella's chips in the second half of fiscal 2018. However, the company anticipates higher revenues from GoPro in the second half.
Considering all the above discussed factors, Ambarella lowered its forecast of sales excluding GoPro and its ODMs. The company now anticipates revenues to grow between 9% and 12%, down from the earlier guidance range of 20-32%.
However, the company did not provide any update on other fiscal 2018 expectations. During its fiscal first-quarter call, Ambarella had provided these forecasts. Gross margins are estimated to move into the high-end of Ambarella's target margin range of 59-62%, while operating expense is expected to flare up 12-14% over fiscal 2017.
Currently, Ambarella carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and FormFactor, Inc. FORM , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 ank stocks here .
Long-term expected EPS growth rates for Applied Optoelectronics and FormFactor are 17.5% and 16%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FormFactor, Inc. (FORM): Free Stock Analysis Report
Ambarella, Inc. (AMBA): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
GoPro, Inc. (GPRO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A couple of better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and FormFactor, Inc. FORM , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report GoPro, Inc. (GPRO): Free Stock Analysis Report To read this article on Zacks.com click here. Continuing its earnings streak alive for the ninth time in a row, Ambarella Inc.AMBA reported better-than-expected results for second-quarter fiscal 2018.
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A couple of better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and FormFactor, Inc. FORM , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report GoPro, Inc. (GPRO): Free Stock Analysis Report To read this article on Zacks.com click here. Ambarella, Inc. Price, Consensus and EPS Surprise Ambarella, Inc. Price, Consensus and EPS Surprise | Ambarella, Inc. Quote Balance Sheet Ambarella ended the fiscal second quarter with cash and cash equivalents & marketable securities of $400.1 million, down from $420.2 million in the previous quarter.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report GoPro, Inc. (GPRO): Free Stock Analysis Report To read this article on Zacks.com click here. A couple of better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and FormFactor, Inc. FORM , both sporting a Zacks Rank #1 (Strong Buy). Ambarella, Inc. Price, Consensus and EPS Surprise Ambarella, Inc. Price, Consensus and EPS Surprise | Ambarella, Inc. Quote Balance Sheet Ambarella ended the fiscal second quarter with cash and cash equivalents & marketable securities of $400.1 million, down from $420.2 million in the previous quarter.
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A couple of better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. AAOI and FormFactor, Inc. FORM , both sporting a Zacks Rank #1 (Strong Buy). Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Ambarella, Inc. (AMBA): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report GoPro, Inc. (GPRO): Free Stock Analysis Report To read this article on Zacks.com click here. Following the earnings release, the company's shares descended over 9% in the after-hours trade.
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483dbeb2-aee0-4576-8898-977835e76178
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9787.0
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2017-09-01 00:00:00 UTC
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Tech Data (TECD) Lags Q2 Earnings Estimates, Stock Tanks
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AAOI
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https://www.nasdaq.com/articles/tech-data-tecd-lags-q2-earnings-estimates-stock-tanks-2017-09-01
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nan
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nan
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Tech Data Corp.TECD reported fiscal second-quarter 2018 non-GAAP earnings of $1.74 per share, which missed the Zacks Consensus Estimate of $2.06. Moreover, a tepid outlook for the current quarter sent investors' into panic mode. Shares fell over 19% in the aftermarket session following the quarterly results.
However, revenues of $8.88 billion came in well ahead of the consensus mark of $8.71 billion.
On a year-over-year basis, earnings and revenues grew 22.5% and 39.8%, respectively. The year-over-year sales growth was primarily attributed to strong contribution from the recently acquired Technology Solutions business from Avnet AVT . Tech Data's net sales increased almost 41% on a constant currency (CC) basis.
Tech Data Corporation Price, Consensus and EPS Surprise
Tech Data Corporation Price, Consensus and EPS Surprise | Tech Data Corporation Quote
Quarter Details
Net sales from the Americas (47% of revenues) surged 57% to $4.2 billion. Sales from Europe (50%) grew 20% to $4.4 billion. Driven by the acquisition of Technology Solutions, revenues from Asia Pacific (3%) came in at $288 million.
The company said it was on track to achieve $50 million in the year from the date of closing of the technology solutions acquisition. It will achieve another $50 million by the second year.
Gross margin expanded 80 basis points (bps) from the year-ago quarter to 5.8%, primarily due to the addition of Technology Solutions.
Non-GAAP selling, general & administrative (SG&A) expense as a percentage of revenues increased 62 bps to 4.37% in the reported quarter.
Non-GAAP operating margin expanded 21 bps to 1.44%. Segment wise, Americas and Europe expanded 57 bps and 18 bps, respectively.
Balance Sheet and Cash Flow
As of Jul 31, 2017, Tech Data had approximately $1.03 million in cash and cash equivalents compared with $2.13 billion as of Jan 31, 2017. In the quarter, cash provided by operations was $146 million. For the first six months, cash flow from operations was $371 million.
Outlook
For third-quarter fiscal 2017, Tech Data forecasts net sales in the range of $9-$9.35 billion. Non-GAAP earnings are anticipated to be in the range of $1.84-$2.04 per share.
The Zacks Consensus Estimate is currently pegged at $2.20 per share on revenues of $8.60 billion.
Zacks Rank & Share Price Movement
Currently, Tech Data carries a Zacks Rank #2 (Buy). The stock has outperformed the industry on a year-to-date basis. While the stock has returned 27%, the industry gained 24.8%.
Key Picks
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively .
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Avnet, Inc. (AVT): Free Stock Analysis Report
Tech Data Corporation (TECD): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key Picks Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Tech Data Corp.TECD reported fiscal second-quarter 2018 non-GAAP earnings of $1.74 per share, which missed the Zacks Consensus Estimate of $2.06.
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Key Picks Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Tech Data Corporation Price, Consensus and EPS Surprise Tech Data Corporation Price, Consensus and EPS Surprise | Tech Data Corporation Quote Quarter Details Net sales from the Americas (47% of revenues) surged 57% to $4.2 billion.
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Key Picks Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Tech Data Corporation Price, Consensus and EPS Surprise Tech Data Corporation Price, Consensus and EPS Surprise | Tech Data Corporation Quote Quarter Details Net sales from the Americas (47% of revenues) surged 57% to $4.2 billion.
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Key Picks Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Tech Data Corporation (TECD): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Tech Data Corp.TECD reported fiscal second-quarter 2018 non-GAAP earnings of $1.74 per share, which missed the Zacks Consensus Estimate of $2.06.
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9f70c526-3612-4c5d-af10-43fc2ddbb04b
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9788.0
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2017-09-01 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Apple, Applied Materials, Activision Blizzard and Applied Optoelectronics
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AAOI
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-apple-applied-materials-activision-blizzard-and-applied
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nan
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nan
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For Immediate Release
Chicago, IL - September 01, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple Inc. ( NASDAQ: AAPL - Free Report), Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Apple Faces Legal Battle in China Ahead of iPhone 8 Launch
Apple Inc. ( NASDAQ: AAPL - Free Report) is facing an antitrust complaint in China. Per Reuters, local developers have accused the iPhone maker of charging exorbitant fees and removing apps from its local store without proper clarification. The complaint is now being reviewed by China's State Administration for Industry and Commerce (SAIC).
Like many other U.S.-based companies, China has been a tough nut to crack for Apple as well. The country is the second largest iPhone market. However, strict regulations have often played havoc with its operations.
Per New York Times, last year, the State Administration of Press, Publication, Radio, Film and Television "asserted its authority" and shut down Apple's iTunes Movies and iBooks services after being in operations for not even seven months.
Moreover, competition from local players such as Huawei and Oppo is also hindering growth prospects. Additionally, in a bid to promote domestic manufacturers, the Chinese government has created an increasingly challenging regulatory environment for foreign companies to operate.
Notably, in the last reported quarter, Apple revenues declined around 10% year over year in the Greater China region to $8 billion. The regulatory issues faced by the company in the region can aggravate the problem further.
Apple Inc. Revenue (TTM) | Apple Inc. Quote
However, the company remains optimistic about the long-term growth prospects of the region, especially given the hype surrounding iPhone 8, which is rumored to be launched in Sep 2017. A survey conducted by Maxim Group in May indicates a "significant pent-up demand" for iPhone 8 in China. Per Maxim Group, iPhone sales in China will increase 170% year over year to 80.7 million units in fiscal 2018.
Notably, shares of Apple have gained 40.7% year to date, slightly outperforming the industry's 39.9% rally.
Notable Moves In China
Apple has stepped up investment in the country to woo the government in a bid to protect its business interests. The company's optimism regarding the region is further evident from its recent appointment of Isabel Ge Mahe to the newly created post of vice president and managing director of Greater China to "provide leadership and coordination across Apple's China-based team."
Recently, the company collaborated with local internet services companies to establish its first data center in China that will ensure compliance with the country's newly implemented cyber-security regulations.
New York Times reported last month that Apple had taken off virtual private networks (VPN) applications from its China App Store that were used to breach the Great Firewall. Last year, the company had even removed a news app by New York Times following a request by the Chinese government. Such moves from Apple definitely show its cooperation with the Chinese government with respect to Internet censorship.
Earlier last year, the company had invested $1 billion in the ride-hailing company, Didi Chuxing (DIDI). Moreover, in March, it announced plans to build two R&D centers in Shanghai and Suzhou, Jiangsu province. It established two R&D centers in Beijing and Shenzhen last year.
Zacks Rank & Stocks to Consider
Apple has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ), all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Apple Inc. ( NASDAQ: AAPL - Free Report), Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Better-ranked stocks in the broader technology sector include Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ), all sporting a Zacks Rank #1 (Strong Buy). Get the full Report on AAPL - FREE Get the full Report on AMAT - FREE Get the full Report on ATVI - FREE Get the full Report on AAOI - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Apple Inc. ( NASDAQ: AAPL - Free Report), Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Better-ranked stocks in the broader technology sector include Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ), all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Apple Inc. ( NASDAQ: AAPL - Free Report), Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Get the full Report on AAPL - FREE Get the full Report on AMAT - FREE Get the full Report on ATVI - FREE Get the full Report on AAOI - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Apple Inc. ( NASDAQ: AAPL - Free Report), Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ). Better-ranked stocks in the broader technology sector include Applied Materials (NASDAQ: AMAT - Free Report ), Activision Blizzard (NASDAQ: ATVI - Free Report ) and Applied Optoelectronics (NASDAQ: AAOI - Free Report ), all sporting a Zacks Rank #1 (Strong Buy). Get the full Report on AAPL - FREE Get the full Report on AMAT - FREE Get the full Report on ATVI - FREE Get the full Report on AAOI - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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e0c04c16-b3ce-436f-ac69-d81e21dd9a5c
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9789.0
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2017-09-01 00:00:00 UTC
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Juniper Networks Upgraded to Strong Buy on Product Launch
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AAOI
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https://www.nasdaq.com/articles/juniper-networks-upgraded-to-strong-buy-on-product-launch-2017-09-01
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nan
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nan
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On Sep 1, Juniper Networks Inc.JNPR was upgraded to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The upgrade can primarily be attributed to the recent launch of its new security solution Juniper Contrail Security as well as the company's better-than-expected second-quarter 2017 results.
In the last quarter, Juniper's earnings increased 14% from the year-ago quarter to 57 cents per share. The figure was ahead of management's expectation of 54 cents (+/- 3 cents). Revenues, which increased 7.2% year over year to $1.31 billion, comfortably surpassed the Zacks Consensus Estimate and management's expectation of $1.28 billion (+/- $30 million). The year-over-year revenue growth was much better than management's expectation of 5%.
Juniper stock has lost 2.3% year to date, outperforming the 2.6% decline of the industry it belongs to.
Growth Catalysts
We believe Juniper's latest introduction, Contrail Security has boosted the growth potential of the company. The security solution ensures protection for applications that are deployed in volume-loaded heterogeneous cloud-based environments. Hence, this new launch coupled with Juniper's existing Software Defined Secure networks (SDSN) will drive the company's top line going forward.
Juniper Networks, Inc. Revenue (TTM)
Juniper Networks, Inc. Revenue (TTM) | Juniper Networks, Inc. Quote
Notably, Juniper has witnessed accelerated demand and adoption of its SDSN platforms. In the second quarter, the platform was enhanced with security enforcements, which now protect data transmission and computing on enterprise networks as well as public and private clouds from breaches.
Juniper added many prominent names to its customer base during the last reported quarter. CloudSeeds selected Juniper's Contrail Networking software-defined networking (SDN) solution. Coloclue adopted Juniper's NVF Solution. i3D.net also selected Juniper's SDSN platform for network security.
Can it Sustain the Momentum?
The company recently unveiled Cloud-Grade Networking, which covers telemetry, automation and machine learning processes. This is also expected to drive the top line in the near term. We anticipate strong adoption of Juniper's cloud-based products (particularly in data center), growing demand for its switching product (the QFX line) and stringent cost control along with shareholder friendly initiatives to help the stock maintain its momentum in the long run.
Key Picks
Other stocks worth considering in the broader technology sector include Motorola Solutions MSI , Infineon IFNNY and Applied Optoelectronics AAOI . While both Infineon and Applied Optoelectronics sport a Zacks Rank #1 (Strong Buy), Motorola carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The long-term earnings growth rate for Motorola Solutions, Infineon and Applied Optoelectronics is 5.2%, 14.6% and 17.5% respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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Juniper Networks, Inc. (JNPR): Free Stock Analysis Report
Motorola Solutions, Inc. (MSI): Free Stock Analysis Report
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key Picks Other stocks worth considering in the broader technology sector include Motorola Solutions MSI , Infineon IFNNY and Applied Optoelectronics AAOI . Click to get this free report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Hence, this new launch coupled with Juniper's existing Software Defined Secure networks (SDSN) will drive the company's top line going forward.
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Click to get this free report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks Other stocks worth considering in the broader technology sector include Motorola Solutions MSI , Infineon IFNNY and Applied Optoelectronics AAOI . Juniper Networks, Inc. Revenue (TTM) Juniper Networks, Inc. Revenue (TTM) | Juniper Networks, Inc. Quote Notably, Juniper has witnessed accelerated demand and adoption of its SDSN platforms.
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Click to get this free report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks Other stocks worth considering in the broader technology sector include Motorola Solutions MSI , Infineon IFNNY and Applied Optoelectronics AAOI . On Sep 1, Juniper Networks Inc.JNPR was upgraded to a Zacks Rank #1 (Strong Buy).
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Key Picks Other stocks worth considering in the broader technology sector include Motorola Solutions MSI , Infineon IFNNY and Applied Optoelectronics AAOI . Click to get this free report Juniper Networks, Inc. (JNPR): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report Infineon Technologies AG (IFNNY): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. On Sep 1, Juniper Networks Inc.JNPR was upgraded to a Zacks Rank #1 (Strong Buy).
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fb849fb8-1b21-44b0-933d-99a3029133ab
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9790.0
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2017-09-01 00:00:00 UTC
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Apple's (AAPL) Much Awaited Event to Take Place on Sep 12
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AAOI
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https://www.nasdaq.com/articles/apples-aapl-much-awaited-event-to-take-place-on-sep-12-2017-09-01
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nan
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nan
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Apple IncAAPL has sent out invitations to the media for a big event to be held on Sep 12, 2017 at the Steve Jobs Theater at its new headquarters located at Cupertino, CA, per reports.
Apple usually holds a big event in September to reveal its latest offerings, which start retailing a week after the event.
However, for a long time now, there has been tremendous buzz about this year's event as Apple is expected to unveil the tenth anniversary iPhone edition along with Phone 7S and iPhone 7S Plus, which are updates to its iPhone 7 and 7 Plus editions unveiled last year.
Apple Inc. Price
Apple Inc. Price | Apple Inc. Quote
Nicknamed as iPhone 8, Apple's mega edition phone has caught the fancy of one and all. Apple is likely to make a big innovation leap with iPhone 8. It is rumored to have features like a glass body, a dual curved edge-to-edge OLED (organic light-emitting diode) display with wireless charging (USB-C) and higher storage options. The camera is likely to be far better than its predecessors.
Reportedly, iPhone 8 will be the first of its kind to support OLED display. Per reports, the company has ordered nearly 100 million OLED screens from Samsung Electronics. OLED display is being increasingly adopted as it comes with improved brightness, contrast and efficiency compared with LCD or Plasma displays. Television sets have long been equipped with OLED displays. Smartphones are also catching up fast.
Expectations regarding the upcoming iPhone 8 are humongous. The revolutionary iPhone, first released in June 2007 had changed the world forever. The iPhone was the first phone to have a touch screen and was a "breakthrough internet device".
Upon release, the phone received terrific response. Following that, the success of iPhone over the last decade is well chronicled. Apple has sold over a billion iPhones across the globe. However, over the past few quarters, Apple's iPhone sales have been marred by increasing competition from cheaper handsets like Oppo and Vivo.
With iPhone 8, Apple's fortunes in China are expected to get a boost. A survey conducted by Maxim Group in May indicated "significant pent-up demand" for iPhone 8 in China. Per Maxim Group, iPhone sales in China will increase 170% year over year to 80.7 million units in fiscal 2018.
Also, if we go by the latest report from IDC, Apple will see a 9.1% rise in iPhone shipments next year driven by iPhone 8, iPhone 7S and 7S Plus. Though iPhone 8 is slated for release this year, the majority of shipments are "likely to land early in 2018", according to IDC. More importantly, average selling price of premium devices (with large screens) will increase 9% by 2021 driven by high-end mobile phones like iPhone 8, Note 8, V30 and more.
Apart from the new iPhones, per media reports, Apple could launch a new Apple watch. There could also be a new Apple 4K TV . The company is likely to speak at length about iOS 11 and new MacOS and watchOS.
At the WWDC earlier this year, Apple gave a sneak peek into its AR efforts. The company also displayed an augmented reality (AR) tool called ARKit. We expect more on this at the September event along with HomePod.
Zacks Rank and Share Price Movement
At present, Apple carries a Zacks Rank #3 (Hold).
Notably, the company has outperformed the industry in the past one year. Shares of Apple have surged 51.2% compared with the industry's 50.6% increase.
Stocks to Consider
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively .
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Apple IncAAPL has sent out invitations to the media for a big event to be held on Sep 12, 2017 at the Steve Jobs Theater at its new headquarters located at Cupertino, CA, per reports.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. Price Apple Inc. Price | Apple Inc. Quote Nicknamed as iPhone 8, Apple's mega edition phone has caught the fancy of one and all.
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Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). However, for a long time now, there has been tremendous buzz about this year's event as Apple is expected to unveil the tenth anniversary iPhone edition along with Phone 7S and iPhone 7S Plus, which are updates to its iPhone 7 and 7 Plus editions unveiled last year.
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Stocks to Consider Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Reportedly, iPhone 8 will be the first of its kind to support OLED display.
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076fd8be-863c-42ac-9327-e8be26f3d41c
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9791.0
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2017-08-31 00:00:00 UTC
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Semtech (SMTC) Q2 Earnings Beat, Sales Miss, Guidance Weak
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AAOI
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https://www.nasdaq.com/articles/semtech-smtc-q2-earnings-beat-sales-miss-guidance-weak-2017-08-31
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nan
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nan
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Semtech CorporationSMTC reported mixed fiscal second-quarter 2018 results with earnings beating the Zacks Consensus Estimate but revenues missing the same. While non-GAAP earnings of 48 cents beat the consensus mark by 2 cents, revenues missed the same by $3 million. Earnings increased 9.1% sequentially and 37.1% year over year.
Shares, however, plunged 13.6% in after-hour trading following weak top-line guidance for the current quarter. Revenues are expected in the range of $145.0 million to $153.0 million that implies 2.7% sequential decline at the mid-point of the guided range.
Over the last year, shares have gained 35%, significantly outperforming the industry's 29.3% rally.
In the quarter, Semtech acquired AptoVision, a privately held company that provides algorithms for transporting video over Internet protocol (IP). The acquisition is expected to strengthen Semtech's position in the video over IP Pro AV space. The company expects this acquisition to contribute roughly $2 million to fiscal 2018 revenues and be neutral to fiscal 2018 non-GAAP results.
The numbers in detail.
Revenues in Detail
Semtech's total revenue of $153.1 million was up 6% sequentially and 13% year over year and was wihin the guided range of $147 and $157 million. The upside was driven by strong demand for the company's enterprise computing, high-end consumer and industrial end-markets, partially offset by weakness in the communications markets.
Semtech Corporation Price, Consensus and EPS Surprise
Semtech Corporation Price, Consensus and EPS Surprise | Semtech Corporation Quote
Signal Integrity Product Group revenues contributed 43% to total revenue and were down slightly sequentially. Protection Product Group represented 29% of total revenue and was up 7% sequentially and 24% year over year.
Wireless and Sensing Product Group was up 19% sequentially and 59% year over year, contributing 21% to total revenue. Power and High-Reliability Product Group contributed 7% to total revenue and increased 6% sequentially.
Distribution sales represented approximately 65% of total revenue, while direct sales accounted for the rest.
Bookings
During the quarter, bookings decreased sequentially but increased year over year, accounting for roughly 47% of shipments. Also, the book-to-bill ratio was above 1.
Margins and Net Income
Non-GAAP gross margin was 60.2%, up 110 basis points (bps) sequentially and 7 bps year over year due to the impact of lower sequential Comcast warrant expense and a more favorable mix.
Semtech's operating expenses (selling, general and administrative [SG&A] plus product development and engineering) of $66.7 million increased 11.9 sequentially and 12.7% year over year. As a percentage of sales, SG&A increased while product development & engineering expenses decreased.
The net result was an operating margin of 27.5% that declined slightly sequentially but increased 500 bps year over year.
On a non-GAAP basis, Semtech recorded net income of $32.2 million compared with $22.7 million a year ago. On a GAAP basis, the company recorded net income of $12.6 million or 19 cents per share compared with $9 million or 14 cents per share a year ago.
Balance Sheet & Cash Flow
Semtech ended the quarter with cash and cash equivalents of $277.9 million, down from $297.1 million in the previous quarter. Accounts receivables were $61.2 million, up from $51.4 million in the prior quarter.
Long-term debt was $219.3 million compared with $226.5 million in the previous quarter.
During the quarter, cash flow from operations was $35.6 million, capital expenditure was $13.8 million and free cash flow totaled $21.9 million.
Guidance
For fiscal third quarter 2018, on a non-GAAP basis, management expects revenues in the range of $145.0 million to $153.0 million. The Zacks Consensus Estimate is pegged at $160 million.
Non-GAAP gross profit margin is expected within 61.0-61.8%. Management projects SG&A expense within $27-$28 million, and research and development expense of $24-$25 million.
Non-GAAP earnings per share are expected in the range of 48-52 cents. The Zacks Consensus Estimate is pegged at 49 cents.
Zacks Rank and Stocks to Consider
Semtechl has a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Semtech Corporation (SMTC): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks Rank and Stocks to Consider Semtechl has a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Semtech CorporationSMTC reported mixed fiscal second-quarter 2018 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
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Zacks Rank and Stocks to Consider Semtechl has a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Semtech Corporation Price, Consensus and EPS Surprise Semtech Corporation Price, Consensus and EPS Surprise | Semtech Corporation Quote Signal Integrity Product Group revenues contributed 43% to total revenue and were down slightly sequentially.
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Zacks Rank and Stocks to Consider Semtechl has a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues in Detail Semtech's total revenue of $153.1 million was up 6% sequentially and 13% year over year and was wihin the guided range of $147 and $157 million.
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Zacks Rank and Stocks to Consider Semtechl has a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings increased 9.1% sequentially and 37.1% year over year.
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3f178730-092d-4719-821a-68794d12b8c0
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9792.0
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2017-08-31 00:00:00 UTC
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Apple Faces Legal Battle in China Ahead of iPhone 8 Launch
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AAOI
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https://www.nasdaq.com/articles/apple-faces-legal-battle-in-china-ahead-of-iphone-8-launch-2017-08-31
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nan
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nan
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Apple Inc. AAPL is facing an antitrust complaint in China. Per Reuters, local developers have accused the iPhone maker of charging exorbitant fees and removing apps from its local store without proper clarification. The complaint is now being reviewed by China's State Administration for Industry and Commerce (SAIC).
Like many other U.S.-based companies, China has been a tough nut to crack for Apple as well. The country is the second largest iPhone market. However, strict regulations have often played havoc with its operations.
Per New York Times, last year, the State Administration of Press, Publication, Radio, Film and Television "asserted its authority" and shut down Apple's iTunes Movies and iBooks services after being in operations for not even seven months.
Moreover, competition from local players such as Huawei and Oppo is also hindering growth prospects. Additionally, in a bid to promote domestic manufacturers, the Chinese government has created an increasingly challenging regulatory environment for foreign companies to operate.
Notably, in the last reported quarter, Apple revenues declined around 10% year over year in the Greater China region to $8 billion. The regulatory issues faced by the company in the region can aggravate the problem further.
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
However, the company remains optimistic about the long-term growth prospects of the region, especially given the hype surrounding iPhone 8, which is rumored to be launched in Sep 2017. A survey conducted by Maxim Group in May indicates a "significant pent-up demand" for iPhone 8 in China. Per Maxim Group, iPhone sales in China will increase 170% year over year to 80.7 million units in fiscal 2018.
Notably, shares of Apple have gained 40.7% year to date, slightly outperforming the industry's 39.9% rally.
Notable Moves In China
Apple has stepped up investment in the country to woo the government in a bid to protect its business interests. The company's optimism regarding the region is further evident from its recent appointment of Isabel Ge Mahe to the newly created post of vice president and managing director of Greater China to "provide leadership and coordination across Apple's China-based team."
Recently, the company collaborated with local internet services companies to establish its first data center in China that will ensure compliance with the country's newly implemented cyber-security regulations.
New York Times reported last month that Apple had taken off virtual private networks (VPN) applications from its China App Store that were used to breach the Great Firewall. Last year, the company had even removed a news app by New York Times following a request by the Chinese government. Such moves from Apple definitely show its cooperation with the Chinese government with respect to Internet censorship.
Earlier last year, the company had invested $1 billion in the ride-hailing company, Didi Chuxing (DIDI). Moreover, in March, it announced plans to build two R&D centers in Shanghai and Suzhou, Jiangsu province. It established two R&D centers in Beijing and Shenzhen last year.
Zacks Rank & Stocks to Consider
Apple has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and Applied Optoelectronics is currently projected to be 17.1%, 13.6% and 17.5%, respectively.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Per New York Times, last year, the State Administration of Press, Publication, Radio, Film and Television "asserted its authority" and shut down Apple's iTunes Movies and iBooks services after being in operations for not even seven months.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. Revenue (TTM) Apple Inc. Revenue (TTM) | Apple Inc. Quote However, the company remains optimistic about the long-term growth prospects of the region, especially given the hype surrounding iPhone 8, which is rumored to be launched in Sep 2017.
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Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Notably, in the last reported quarter, Apple revenues declined around 10% year over year in the Greater China region to $8 billion.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, in the last reported quarter, Apple revenues declined around 10% year over year in the Greater China region to $8 billion.
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3055758e-9d22-4e4a-9daa-c6ccd87feb14
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9793.0
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2017-08-30 00:00:00 UTC
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Scientific Games Launches Slot Game Featuring Ron Burgundy
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AAOI
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https://www.nasdaq.com/articles/scientific-games-launches-slot-game-featuring-ron-burgundy-2017-08-30
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nan
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nan
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Scientific Games CorporationSGMS announced the launch of its new five-reel, 25-line video slot game named Anchorman: The Legend of Ron Burgundy , which will be available across North America soon.
The game, based on Paramount Pictures' comedy franchise, ANCHORMAN , is designed for the new TwinStar V24/43 cabinet that "features best-in-class processing power, eye-catching 24-inch and 43-inch HD displays, interactive touch controls, and an immersive sound system that makes for a superior player experience."
We believe the new game will help to sustain the momentum in Scientific Games' shares, which have gained 149.7% year to date, substantially outperforming the industry's 9.8% rally.
Growth in Gaming Segment
In the last reported quarter, almost 60% of the company's total revenue was contributed by its gaming segment, which was driven by growth in Gaming Machine sales and Gaming Systems. Management noted that the company's Gamescape, Pro Wave, and TwinStar cabinets along with J43 and three-reel mechanical cabinets have been instrumental in boosting its gaming segment.
Per Technavio, the global slot machines market is forecast to witness CAGR of 15.49% during the period 2017-2021. The company's continuous efforts to launch products will help it to cash in on the growing market in our view.
Notably, in June 2017, Scientific Games launched its first skill-based slot machine - Space Invaders - based on the popular classic arcade video game, which was featured on the Blade s32 cabinet.
In the same month, the company also launched- The SIMPSONS - based on characters and settings from the record-breaking popular animated television series, and showcased it on the Gamescape cabinet.
Scientific Games' future pipeline of slot games includes Seinfeld and James Bond themed games. Per Variety, the company expects to showcase the James Bond-themed slot games at the Global Gaming Expo in Las Vegasto be held from Oct 3 to Oct 5.
However, increasing investments for product development and strong competition are anticipated to weigh on margins.
Scientific Games Corp Price
Scientific Games Corp Price | Scientific Games Corp Quote
Zacks Rank & Stocks to Consider
Currently, Scientific Games carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Applied Optoelectronics and Activision is currently projected to be 17.1%, 17.5% and 13.6%, respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Scientific Games Corp (SGMS): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. The game, based on Paramount Pictures' comedy franchise, ANCHORMAN , is designed for the new TwinStar V24/43 cabinet that "features best-in-class processing power, eye-catching 24-inch and 43-inch HD displays, interactive touch controls, and an immersive sound system that makes for a superior player experience."
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Scientific Games Corp Price Scientific Games Corp Price | Scientific Games Corp Quote Zacks Rank & Stocks to Consider Currently, Scientific Games carries a Zacks Rank #3 (Hold).
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Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Growth in Gaming Segment In the last reported quarter, almost 60% of the company's total revenue was contributed by its gaming segment, which was driven by growth in Gaming Machine sales and Gaming Systems.
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Better-ranked stocks in the broader technology sector include Applied Materials AMAT , Activision Blizzard ATVI and Applied Optoelectronics AAOI , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Scientific Games Corp (SGMS): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, in June 2017, Scientific Games launched its first skill-based slot machine - Space Invaders - based on the popular classic arcade video game, which was featured on the Blade s32 cabinet.
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b20f33bb-454d-44ff-98b4-3343dd410c56
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9794.0
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2017-08-30 00:00:00 UTC
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Western Digital Continues Acquisition Spree with Tegile Buy
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AAOI
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https://www.nasdaq.com/articles/western-digital-continues-acquisition-spree-with-tegile-buy-2017-08-30
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nan
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nan
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Western Digital CorporationWDC has been on an acquisition spree lately. Post the company's buyout of Upthere, an app-based cloud-storage startup, yesterday, this hard disk drive (HDD) producer is set for another strategic acquisition.
Western Digital signed an agreement to acquire Tegile Systems ("Tegile") for an undisclosed amount. The company will integrate Tegile into its Data Center Systems (DCS) business unit. The acquisition deal is anticipated to close in the week of Sep 4, 2017, subject to customary closing conditions.
California-based Tegile offers flash-driven storage arrays for database, virtualized server and virtual desktop environments. Tegile IntelliFlash storage arrays provide comprehensive data protection, with support for network attached storage (NAS) and storage area network (SAN) connectivity.
Synergies from the Deal
The acquisition is believed to be in sync with the company's strategy to push itself further in to the enterprise cloud-based storage space. Apart from, expanding the flash- based product portfolio, the acquisition will fetch over 1,700 new customers to Western Digital.
The company's efforts toward expanding footprint in the flash storage are commendable as its development of the 96-layer 3-D NAND flash technology debuted in June. Consequently, this deal will strengthen its foothold in this space and should prove valuable.
Notably, this deal comes at the time when the storage reportedly on the verge of acquiring Toshiba's flash memory chip business. The common link in the aforementioned acquisitions is that all these companies provide cloud based flash-driven storage solutions which are growing rapidly.
The demand for flash-storage has increased immensely in recent times due to exploding volumes of data. The need for storing this data as well as fast access is significant for Big Data and business analytics applications. According to market research firm IDC, revenues from these applications are expected to grow from $122 million in 2015 to over $187 million in 2019 (up more than 50%).
Hence, the rising demand for flash storage bodes well for Western Digital, which is taking the inorganic route to bolster flash storage offerings.
Moreover, per Research and Markets projections, worldwide data center storage market will expand at a four-year compound annual growth rate (CAGR) of 15.01% during 2016-2020. Thus, the acquisition is a prudent move as it will help Western Digital strengthen its storage portfolio and increase market share.
Acquisitions: Key Catalyst for Western Digital
Over the years, Western Digital has focused on acquisitions to expand total addressable market (TAM) and solidify footprint in growth markets. The acquisition of SanDisk has opened new avenues of growth for the company, particularly in the NAND and SSD markets.
The acquisitions of Amplidata, sTec, Velobit, Inc., Arkeia Software Solutions and Virident Systems have not only reinforced Western Digital's small-to-medium sized business solutions but also expanded its SSD product portfolio.
Bottom line
Western Digital stock has gained 32.6% year to date, substantially outperforming the 12.2% rally of the industry it belongs to.
We believe that the acquisition strengthens Western Digital's position in the storage market, especially compared to peers Seagate Technology STX .
We believe that the shift toward non-PC applications, secular growth of digital data and increasing exposure to the small and medium business space are the long-term positives for Western Digital. The company's growing footprint in the automotive as well as the connected home and industrial categories is a significant positive, in our view.
We remain encouraged by the company's launch of a string of storage devices under the mobile and cloud segment. Further, Western Digital's entry into the wireless devices market comes at a time when storage services related to smartphones and tablets are witnessing large-scale adoption. These factors are anticipated to be growth catalysts, going forward.
Zacks Rank & Key Picks
Better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and Applied Optoelectronics AAOI . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
NVIDIA and Applied Optoelectronics has a long-term expected EPS growth rate of 10.3% and 17.5%, respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Western Digital Corporation (WDC): Free Stock Analysis Report
Seagate Technology PLC (STX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks Rank & Key Picks Better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and Applied Optoelectronics AAOI . Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. Post the company's buyout of Upthere, an app-based cloud-storage startup, yesterday, this hard disk drive (HDD) producer is set for another strategic acquisition.
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Zacks Rank & Key Picks Better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and Applied Optoelectronics AAOI . Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. Acquisitions: Key Catalyst for Western Digital Over the years, Western Digital has focused on acquisitions to expand total addressable market (TAM) and solidify footprint in growth markets.
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Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank & Key Picks Better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and Applied Optoelectronics AAOI . Acquisitions: Key Catalyst for Western Digital Over the years, Western Digital has focused on acquisitions to expand total addressable market (TAM) and solidify footprint in growth markets.
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Zacks Rank & Key Picks Better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and Applied Optoelectronics AAOI . Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. Thus, the acquisition is a prudent move as it will help Western Digital strengthen its storage portfolio and increase market share.
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99cb350c-d8e7-44de-bce3-b460d06d6836
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9795.0
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2017-08-30 00:00:00 UTC
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ADTRAN's Mosaic Alliance to Advance Networking Solutions
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AAOI
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https://www.nasdaq.com/articles/adtrans-mosaic-alliance-to-advance-networking-solutions-2017-08-30
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nan
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nan
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In a bid to expand its product portfolio, ADTRAN Inc.ADTN announced creation of the ADTRAN Mosaic Open Network Alliance (Mosaic Alliance). ADTRAN Mosaic, the most open, programmable and scalableSD-Access solution prevalent in the industry, forms the base of this program.
With the success of Mosaic SD-Access platforms, ADTRAN is developing the Mosaic Alliance to promote advancement and adoption of SDN and NFV solutions, depending on open standards, thus maximizing the utility that such open collaborations can provide.
The Mosaic Alliance will bring market participants together, who are committed to delivering, demonstrating and testing open and proven SDN and NFV solutions. The program will enable ADTRAN to lend world-wide operators a single point of reference for best-of-breed SD-Access and NFV solutions.
The Mosaic Alliance offers an exclusively authenticated solution to save network operators the time and resources required to evaluate and substantiate vendors and services most suited for their open network demands. It will also lessen introduction risks to the operator's business.
Mosaic Alliance members will also avail of ADTRAN expertise and aid one another for exchange of information and mutual assistance for the establishment of new open SD-Access projects.
Members have already begun enrolling in the Mosaic Alliance and ADTRAN is in the process of reviewing a list of additional prospective candidates. The company will announce partners to the alliance in the coming months.
ADTRAN, Inc. Price
ADTRAN, Inc. Price | ADTRAN, Inc. Quote
Zacks Rank & Other Key Picks
ADTRAN currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the Computer and Technology sector are AAC Technologies Holdings Inc. AACAY , Applied Optoelectronics, Inc. AAOI and ACI Worldwide, Inc. ACIW . While AAC Technologies and Applied Optoelectronics sport a Zacks Rank #1 (Strong Buy), ACI Worldwide carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of AAC Technologies and Applied Optoelectronics have surged more than 100% in a year, while ACI Worldwide shares have rallied 15.6% over the same time period.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ADTRAN, Inc. (ADTN): Free Stock Analysis Report
ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
AAC Technologies Holdings Inc. (AACAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other top-ranked stocks in the Computer and Technology sector are AAC Technologies Holdings Inc. AACAY , Applied Optoelectronics, Inc. AAOI and ACI Worldwide, Inc. ACIW . Click to get this free report ADTRAN, Inc. (ADTN): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report AAC Technologies Holdings Inc. (AACAY): Free Stock Analysis Report To read this article on Zacks.com click here. The Mosaic Alliance will bring market participants together, who are committed to delivering, demonstrating and testing open and proven SDN and NFV solutions.
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Other top-ranked stocks in the Computer and Technology sector are AAC Technologies Holdings Inc. AACAY , Applied Optoelectronics, Inc. AAOI and ACI Worldwide, Inc. ACIW . Click to get this free report ADTRAN, Inc. (ADTN): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report AAC Technologies Holdings Inc. (AACAY): Free Stock Analysis Report To read this article on Zacks.com click here. ADTRAN, Inc. Price ADTRAN, Inc. Price | ADTRAN, Inc. Quote Zacks Rank & Other Key Picks ADTRAN currently carries a Zacks Rank #2 (Buy).
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Click to get this free report ADTRAN, Inc. (ADTN): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report AAC Technologies Holdings Inc. (AACAY): Free Stock Analysis Report To read this article on Zacks.com click here. Other top-ranked stocks in the Computer and Technology sector are AAC Technologies Holdings Inc. AACAY , Applied Optoelectronics, Inc. AAOI and ACI Worldwide, Inc. ACIW . In a bid to expand its product portfolio, ADTRAN Inc.ADTN announced creation of the ADTRAN Mosaic Open Network Alliance (Mosaic Alliance).
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Other top-ranked stocks in the Computer and Technology sector are AAC Technologies Holdings Inc. AACAY , Applied Optoelectronics, Inc. AAOI and ACI Worldwide, Inc. ACIW . Click to get this free report ADTRAN, Inc. (ADTN): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report AAC Technologies Holdings Inc. (AACAY): Free Stock Analysis Report To read this article on Zacks.com click here. In a bid to expand its product portfolio, ADTRAN Inc.ADTN announced creation of the ADTRAN Mosaic Open Network Alliance (Mosaic Alliance).
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fc37ef8b-7c5b-4baf-8aac-77bfc036ffde
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9796.0
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2017-08-29 00:00:00 UTC
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Groupon Lays Off 130 Employees as Part of Restructuring
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AAOI
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https://www.nasdaq.com/articles/groupon-lays-off-130-employees-as-part-of-restructuring-2017-08-29
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nan
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nan
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Groupon Inc . GRPN recently announced the layoff of 130 employees from its customer service unit in Chicago as part of its restructuring activities.
This group consisted of remote workers. Chicago Business quoted a spokesperson from the company who said that the step will ensure centralization of the customer service roles, training and resolution process, which will ultimately improve customer service.
There was no confirmation whether these positions will be filled any time soon. However, the company does not anticipate this move to be a headwind for customer service quality.
Shares of Groupon have gained 24.7% year to date, underperforming the industry's 47.8% rally.
Groupon's Restructuring Timeline
Groupon has been concentrating on streamlining its operations by reducing international presence to focus on its core profit area. To this end, it cut 1100 jobs in September 2015 and ceased operating in seven countries namely Morocco, Panama, the Philippines, Puerto Rico, Taiwan, Thailand, and Uruguay.
In March 2017, the company terminated the services of employees of LivingSocial, which it had acquired in October 2016. Groupon also closed the Washington D.C. office of Living Social as part of the same strategy.
In first-quarter 2017, the company reduced its presence from 27 to 15 countries.
Groupon, Inc. Revenue (TTM)
Groupon, Inc. Revenue (TTM) | Groupon, Inc. Quote
Impact of the Restructuring Processes
We believe the company's streamlining activities have positively impacted margins. Groupon's focus on the domestic market is helping it to accelerate gross profit. In second-quarter 2017, gross margin increased 590 basis points (bps) on a year-over-year basis to 49.5% in the quarter.
Operating loss (excepting one-time items) was $2.77 million compared with a loss of $32.54 million in the year-ago quarter. This led to a sequential improvement in the bottom-line results in the last quarter.
Despite reduced international presence and intensifying competition, we expect the restructuring will positively impact Groupon's overall results going forward.
Zacks Rank & Key Picks
Groupon currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology space are Activision Blizzard, Inc ATVI Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings growth rate for Activision Blizzard, Applied Optoelectronics and Applied Materials is projected to be 13.63%, 17.50% and 17.11%, respectively.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Groupon, Inc. (GRPN): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Activision Blizzard, Inc (ATVI): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology space are Activision Blizzard, Inc ATVI Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. GRPN recently announced the layoff of 130 employees from its customer service unit in Chicago as part of its restructuring activities.
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Better-ranked stocks in the broader technology space are Activision Blizzard, Inc ATVI Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Groupon, Inc. Revenue (TTM) Groupon, Inc. Revenue (TTM) | Groupon, Inc. Quote Impact of the Restructuring Processes We believe the company's streamlining activities have positively impacted margins.
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Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology space are Activision Blizzard, Inc ATVI Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , all sporting a Zacks Rank #1 (Strong Buy). Groupon's Restructuring Timeline Groupon has been concentrating on streamlining its operations by reducing international presence to focus on its core profit area.
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Better-ranked stocks in the broader technology space are Activision Blizzard, Inc ATVI Applied Optoelectronics, Inc. AAOI and Applied Materials, Inc. AMAT , all sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Groupon, Inc. (GRPN): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Groupon Inc .
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eed4bf78-91ea-49ed-9e69-62bd1dff35bb
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9797.0
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2017-08-29 00:00:00 UTC
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Is Google Eyeing Wi-Fi Success in Indonesia After India?
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AAOI
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https://www.nasdaq.com/articles/is-google-eyeing-wi-fi-success-in-indonesia-after-india-2017-08-29
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nan
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nan
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Alphabet Inc. 's GOOGL Google is rolling out its free Wi-Fi program Google Station in Indonesia as part of which public places like railway stations and universities will have free connectivity.
The program will be initially launched in a few cities and expanded going ahead. Google is working with internet service providers (ISPs), system integrators and venue owners on this endeavor.
We observe that Alphabet stock has gained 16.7% over the past year, outperforming the 13.4% rally of the industry it belongs to.
Replicating the Success in India
Google launched this program in India in January 2016, partnering with Indian Railways' Internet services arm RailTel to provide public Wi-Fi service at the Mumbai Central station. In September, Google expanded the project to other public places including malls, cafes, universities, stations and hangout spots.
The company claims that the service is currently active in more than 150 stations and plans to extend it to 400. With the new move, it seems that Google is trying to repeat the success of this program in Indonesia.
Alphabet Inc. PE Ratio (TTM)
Alphabet Inc. PE Ratio (TTM) | Alphabet Inc. Quote
Opportunities in Indonesia
According to eMarketer, Indonesia currently has about 100.8 million internet users, the highest among Southeast Asian countries. The figure is expected to reach 137.2 million by 2021.
However high-speed internet connectivity is lacking in the nation. Per a data from Akamai, Indonesia had just 7.2 megabits per second (Mbps) of average data connection speed in the first quarter of 2017.
Furthermore, mobile users of the country prefer connecting to Wi-Fi rather than internet from mobile service providers to save usage fees. Per a JakPat survey from February 2017, more than 50% of mobile internet users in the country connected to Wi-Fi on a daily basis.
Furthermore, according to a report by Singapore's sovereign wealth fund Temasek and Google, the internet economy of Southeast Asia is expected to surge to a massive $200 billion by 2025.
These trends offer ample opportunities for Google to tap the growing number of data conscious and budget friendly internet users in Indonesia and lure them to its high-speed services.
The company is also launching the YouTube Go app in the country that will allow users save videos and watch or share them offline.
Our Take
We believe that with this move, Google is looking to strengthen its global foothold as well as boost ad revenues. The company's ability to innovate has translated into strong growth as it continues to adapt to changing market trends.
It seems that it has all resources and technology to create successful ventures in Asia. The company is banking on its huge cash balance and technological prowess to pursue growth in any market that exhibits true potential.
Zacks Rank and Stocks to Consider
Currently Alphabet carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include Lam Research LRCX , Applied Materials AMAT and Applied Optoelectronics AAOI , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The long-term expected earnings per share (EPS) growth rate for Lam Research, MiX Telematics and Alibaba are a respective 17.2%, 17.1% and 17.5%, respectively.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector include Lam Research LRCX , Applied Materials AMAT and Applied Optoelectronics AAOI , each carrying a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. In September, Google expanded the project to other public places including malls, cafes, universities, stations and hangout spots.
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Better-ranked stocks in the broader technology sector include Lam Research LRCX , Applied Materials AMAT and Applied Optoelectronics AAOI , each carrying a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc. PE Ratio (TTM) Alphabet Inc. PE Ratio (TTM) | Alphabet Inc. Quote Opportunities in Indonesia According to eMarketer, Indonesia currently has about 100.8 million internet users, the highest among Southeast Asian countries.
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Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector include Lam Research LRCX , Applied Materials AMAT and Applied Optoelectronics AAOI , each carrying a Zacks Rank #1 (Strong Buy). Alphabet Inc. 's GOOGL Google is rolling out its free Wi-Fi program Google Station in Indonesia as part of which public places like railway stations and universities will have free connectivity.
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Better-ranked stocks in the broader technology sector include Lam Research LRCX , Applied Materials AMAT and Applied Optoelectronics AAOI , each carrying a Zacks Rank #1 (Strong Buy). Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc. 's GOOGL Google is rolling out its free Wi-Fi program Google Station in Indonesia as part of which public places like railway stations and universities will have free connectivity.
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55e96018-0c55-4de4-9d52-71e962ad435d
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9798.0
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2017-08-25 00:00:00 UTC
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Autodesk (ADSK) Q2 Loss Lower Than Expected, Revenues Beat
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AAOI
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https://www.nasdaq.com/articles/autodesk-adsk-q2-loss-lower-than-expected-revenues-beat-2017-08-25
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nan
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nan
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Autodesk Inc. ADSK reported second-quarter fiscal 2018 non-GAAP loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 15 cents. The figure was also much narrower than the guided range of a loss of 14-18 cents per share.
Revenues of $501.8 million beat the consensus mark of $494.8 million but fell nearly 8.9% year over year. The figure was better than the guided range of $488-$500 million.
Moreover, deferred revenues increased 17% to $1.78 billion in the quarter, which reflects growing strength of the business model. Total recurring revenue was 91% in the reported quarter, a significant increase from 69% reported in the year-ago quarter.
Management continues to emphasize that revenues will be negatively impacted by the business model transition from "upfront" to "ratably" as well as lower initial purchase price of new offerings.
Improvement in average revenue per subscriptions (ARPS) owing to price increases as well as lesser discounts related to shift from legacy maintenance plans to product subscriptions will drive growth in second half fiscal 2018.
Notably, shares of Autodesk have gained 49.5% year to date, substantially outperforming the industry's 21.9% rally.
Top Line Details
Revenues were impacted by a 74.4% year-over-year decline in License revenues (8.7% of total revenue), which were $43.9 million in the quarter.
Maintenance revenues (52.2% of total revenue) also declined 5.7% from the year-ago quarter to $261.8 million, primarily due to lower subscriptions.
However, subscription revenues soared 92.6% year over year to $196.1 million, driven by strong adoption of product subscription.
Total subscriptions increased approximately 153K from the prior quarter to 3.44 million in the quarter. Subscription plan (product, end-of-life and cloud subscriptions) increased approximately 270K from the last quarter to 1.59 million.
The company's maintenance to subscription or M2S program generated 63K subscriptions. New customers represented about 30% of the mix for the quarter and continue to contribute a significant portion of product subscription additions.
Cloud subscription additions continue to show impressive growth driven by robust performance from BIM 360 and Fusion tools.
Total annualized recurring revenue (ARR) was $1.83 billion, up 21% from the year-ago quarter and 23% on a constant currency (cc) basis. Subscription plan ARR surged 98% at cc.
Geographically, revenues in the Americas decreased 7% year over year to $214 million. EMEA revenues declined 10% to $199 million, while the same from APAC decreased 12% from the year-ago quarter to $89 million.
Operating Results
Non-GAAP gross margin contracted 43 basis points (bps) from the year-ago quarter to 86.7%, primarily due to massive contraction in license gross margins.
The company reported non-GAAP operating loss of $28.8 million in the quarter while in the year-ago quarter the company had reported operating income of $25.9 million.
Balance Sheet
Autodesk exited the quarter with total cash and cash equivalents (including marketable securities) of $1.71 billion compared with $1.90 billion as on Jan 31, 2017.
However, the company lost $27.3 million of cash from operating activities as of Jul 31, 2017. The company repurchased 1.2 million shares for a total of $119 million.
Outlook
For third-quarter fiscal 2018, Autodesk expects revenues in the range of $505-$515 million. Non-GAAP loss per share is anticipated in the range of 12-16 cents for the quarter.
The Zacks Consensus Estimate is currently pegged at a loss of 13 cents on revenues of $517.1 million.
Buoyed by the encouraging second-quarter results, Autodesk revised its full-year revenue and EPS expectations. The company now expects revenues in the range of $2.030-$2.050 billion (mid-point $2.040 billion), narrowed from the prior guidance of $2.000-$2.050 billion (mid-point $2.025). Non-GAAP loss is now expected in the range of 54 cents to 61 cents compared with the previous guidance of 56 cents to 73 cents.
The Zacks Consensus Estimate is currently pegged at a loss of 56 cents on revenues of $2.05 billion.
Autodesk now projects subscription additions to be between 625K and 675K compared with the prior guidance of 600K and 650K. Total ARR is still expected to be in the range of 24% to 26%. Non GAAP spending is expected to remain unchanged on a year-over-year basis.
Autodesk, Inc. Price, Consensus and EPS Surprise
Autodesk, Inc. Price, Consensus and EPS Surprise | Autodesk, Inc. Quote
Our Take
Autodesk's business transition from licenses to cloud-based services is expected to benefit it in the long run by boosting subscriptions and deferred revenues. The company's marketing and promotional activities are expected to sustain its growing subscription base.
Autodesk's broad product portfolio will generate new customers in both domestic and overseas markets as evident from the year-over-year triple digit growth in product subscriptions in major geographies including emerging countries.
However, although the company plans to keep spending unchanged over the next one year, it remains concerned about the increasing foreign exchange headwinds, which might weigh heavily on its expenses.
Zacks Rank & Stocks to Consider
Autodeskcarries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Better-ranked stocks in the broader technology sector includeApplied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1.
Long-term earnings growth rate for Applied Optoelectronics, Lam Research and IPG Photonics is projected to be 17.5%, 17.2% and 19.7%, respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
IPG Photonics Corporation (IPGP): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the broader technology sector includeApplied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1. Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Management continues to emphasize that revenues will be negatively impacted by the business model transition from "upfront" to "ratably" as well as lower initial purchase price of new offerings.
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Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector includeApplied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1. Autodesk Inc. ADSK reported second-quarter fiscal 2018 non-GAAP loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 15 cents.
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Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the broader technology sector includeApplied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1. The company reported non-GAAP operating loss of $28.8 million in the quarter while in the year-ago quarter the company had reported operating income of $25.9 million.
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Better-ranked stocks in the broader technology sector includeApplied Optoelectronics AAOI , Lam Research LRCX and IPG Photonics IPGP , all sporting a Zacks Rank #1. Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report IPG Photonics Corporation (IPGP): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Maintenance revenues (52.2% of total revenue) also declined 5.7% from the year-ago quarter to $261.8 million, primarily due to lower subscriptions.
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2dde140a-6701-4863-b0c4-29c7f2cbe27d
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9799.0
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2017-08-25 00:00:00 UTC
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Broadcom (AVGO) Tops Q3 Earnings on Robust Top-Line Growth
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AAOI
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https://www.nasdaq.com/articles/broadcom-avgo-tops-q3-earnings-on-robust-top-line-growth-2017-08-25
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nan
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nan
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Broadcom LimitedAVGO reported impressive third-quarter fiscal 2017 results. Earnings were $4.10 per share in the reported quarter, which beat the Zacks Consensus Estimate by 7 cents. The figure surged 43% from the year-ago quarter and 11.2% sequentially.
Non-GAAP revenues from continuing operations were $4.47 billion, which increased 17.5% from the year-ago quarter and 6.3% on a sequential basis. The figure was in line with management's guidance and better than the Zacks Consensus Estimate.
The strong top-line growth was driven by robust performance by the wireless business, which is expected to continue in the fiscal fourth quarter. Higher industrial re-sales also drove revenues. Foxconn was the only direct customer that contributed more than 10% revenues in the reported quarter.
Broadcom now expects fourth-quarter revenue growth in the double-digit range on a year-over-year basis, much similar to the second and third quarter. Gross margin is expected to contract slightly due to unfavorable product mix (higher mix of low margin wireless business).
Broadcom Limited Price, Consensus and EPS Surprise
Broadcom Limited Price, Consensus and EPS Surprise | Broadcom Limited Quote
However, management adopted a cautious stance over growth from end-markets in the long haul. Broadcom operates in relatively matured end markets that are likely to reach closer to GDP rates or in the low single digits over the long term. The company believes that change in market share will not have much positive impact on top-line growth. However, technological superiority will help the company gain more content that will drive revenues.
Nevertheless, Broadcom believes that the current growth rate will be difficult to sustain over the long term. Notably, the stock has returned a massive 44.3% year to date, substantially outperforming the 26.3% gain of the industry it belongs to.
Segment Revenues
Wired Infrastructure revenues (49.5% of total revenue) were $2.21 billion, up 7.1% from the year-ago quarter. Sequentially, revenues increased 4.5%, almost in line with management's guidance.
Revenues were driven by seasonally strong demand for set-top box products as well as merchant and custom silicon products from datacenters. Strong adoption of Jericho and Tomahawk helped the company gain strong market position in the network connectivity business.
However, management witnessed softness in demand for optical and broadband access products from Chinese customers.
Wireless Communications (28.7% of total revenue) revenues were up 27.3% year over year and 11.6% quarter over quarter to $1.28 billion. The top line benefited from the rise in production volumes of the company's large North American smartphone customer's (Apple) next-gen platform (iPhone). Management noted that increase in total dollar content in the upcoming platform drove revenues.
Enterprise Storage (16.5% of total revenue) revenues increased 39.5% from the year-ago quarter and 3.2% sequentially to $735 million. Revenues benefited from strong demand for the company's Hard Disk Drive (HDD) products.
Industrial & other (5.3% of total revenue) revenues increased 17.8% year over year and 6.3% sequentially to $238 million. The increase was primarily driven by higher revenues from Intellectual Property (IP). Management noted that re-sales of its industrial products was significantly strong, which is anticipated to continue.
Operating Details
Gross margin expanded 290 basis points (bps) on a year-over-year basis and 20 bps sequentially to 63.3% owing to favorable product mix. The figure was 30 bps better than management's guidance.
Operating expenses declined 5% year over year and 3.9% to $768 million, lower than management's guidance of approximately $787 million.
Operating expenses, as percentage of revenues, decreased 410 bps from the year-ago quarter driven by lower research & development expenses (down 290 bps) and selling, general & administrative expenses (down 110 bps). Sequentially, operating expenses declined 180 bps.
Operating margin expanded 690 bps from the year-ago quarter and 200 bps from the previous quarter to 46.1%. The figure surpassed management's long-term target of 45%.
Liquidity
As of Jul 30, 2017, cash & cash equivalents were $5.5 billion as compared with $4.3 billion in the previous quarter. Long-term debt was $13.6 billion at the end of the third quarter, almost unchanged from the previous quarter.
Broadcom generated cash flow from operations of $1.7 billion, up $73 million from the prior quarter. Capital expenditures were $255 million, slightly down from $256 million in the previous quarter. Free cash flow was almost $1.4 billion (31% of net revenues).
Acquisition
Broadcom continues to proceed with the acquisition of Brocade, which is anticipated to be concluded in the fourth-quarter of fiscal 2017. Most recently, the company received conditional approval in China.
Management still expects Brocade to generate approximately $1.3 billion plus in revenues and $900 million plus of EBITDA on a run rate post integration.
Guidance
For fourth-quarter fiscal 2017, Broadcom forecasts non-GAAP revenues of almost $4.8 billion (+/- $75 million). The revenue figure reflects almost 7% sequential growth.
Management anticipates Wired Infrastructure business revenues to decline sequentially due to seasonal weakness in demand for broadband access products industry wide.
Wireless Communications revenues are anticipated to grow strongly in the fourth quarter, both on a sequential and year-over-year basis. The upside is likely to be driven by higher dollar content in the company's large North American smartphone customer's next-gen platform.
Despite delayed shipments to this large customer, management expects first-quarter fiscal 2018 revenues to be similar to that of the current quarter.
Moreover, Broadcom expects sharp decline in demand for its HDD products, driven by the start of an anticipated correction in a hard disk drive market. This will hurt Enterprise Storage revenues in the current quarter. However, strong growth expectation in the server and storage connectivity business will fully offset this negative impact from HDDs. Enterprise Storage revenues are projected to report double-digit growth.
Management expects Industrial re-sales to continue to trend up strongly in the fourth quarter.
Gross margin is anticipated to be 63% (+/- 1%), while operating expenses are expected to be approximately $780 million.
The company expects capital expenditures to be approximately $230 million.
Zacks Rank & Key Picks
Currently, Broadcom carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader sector are Applied Optoelectronics AAOI , NVIDIA NVDA and FormFactor FORM . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term earnings estimates for Applied Optoelectronics, NVIDIA (NVDA) and FormFactor (FORM) are pegged at 17.5%, 10.3% and 16%, respectively.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FormFactor, Inc. (FORM): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few better-ranked stocks in the broader sector are Applied Optoelectronics AAOI , NVIDIA NVDA and FormFactor FORM . Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. The top line benefited from the rise in production volumes of the company's large North American smartphone customer's (Apple) next-gen platform (iPhone).
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the broader sector are Applied Optoelectronics AAOI , NVIDIA NVDA and FormFactor FORM . Broadcom Limited Price, Consensus and EPS Surprise Broadcom Limited Price, Consensus and EPS Surprise | Broadcom Limited Quote However, management adopted a cautious stance over growth from end-markets in the long haul.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the broader sector are Applied Optoelectronics AAOI , NVIDIA NVDA and FormFactor FORM . Segment Revenues Wired Infrastructure revenues (49.5% of total revenue) were $2.21 billion, up 7.1% from the year-ago quarter.
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Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the broader sector are Applied Optoelectronics AAOI , NVIDIA NVDA and FormFactor FORM . Non-GAAP revenues from continuing operations were $4.47 billion, which increased 17.5% from the year-ago quarter and 6.3% on a sequential basis.
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3fe5337c-0730-48e4-a8ac-bdeddd06e61a
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