Applied Optoelectronics (AAOI) Falls 7.6% After 5-Day Run

Core Viewpoint - Applied Optoelectronics Inc. (NASDAQ:AAOI) experienced a significant drop in share prices after a strong earnings performance last year, indicating profit-taking by investors following a five-day gain [1]. Financial Performance - The company narrowed its net loss by 80% in the previous year, reducing it to $38.2 million from $186.7 million in 2024, while total revenues increased by 83% to $455.7 million from $249 million [2]. - In the fourth quarter, net loss decreased by 98% to $2.02 million from $119.7 million year-over-year, with total revenues rising by 33.9% to $134.27 million from $100.27 million [4]. Future Outlook - For the first quarter of the year, the company anticipates revenue growth of 50% to 66%, projecting revenues in the range of $150 million to $165 million [6]. - The President and CEO, Thompson Lin, expressed confidence in the company's momentum and growth potential, citing strong demand in both CATV and datacenter businesses [5].