Applied Optoelectronics Stock Soared on Monday

Core Insights - Investors exhibited mixed sentiment towards Applied Optoelectronics (AAOI) stock, with a 0.6% decline on Friday following the earnings report, but a significant 24% increase on Monday [1][6] Financial Performance - The company's revenue for Q4 2025 was just under $100 million, a substantial increase from $40.7 million in Q4 2024 [2] - Applied Optoelectronics narrowed its non-GAAP loss to $900,000 ($0.02 per share), compared to a loss of $12 million in the same quarter last year, aligning with analyst estimates [4] - Guidance for Q1 of the new fiscal year anticipates revenue between $100 million and $110 million, with an adjusted net loss projected between $0.09 and $0.03 per share, contrasting with analyst expectations of a $0.07 profit on $114 million revenue [5] Market Sentiment - The stock's rebound was influenced by the announcement of a pause or reduction in tariffs by the Trump administration on China, where the company has a manufacturing presence [6] - There is optimism regarding the company's potential in the data center segment, but there is pressure to achieve profitability soon, as investors expect a return to positive bottom-line results [7]