---
title: "Applied Optoelectronics Stock Retreats After Monster Rally"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/277650006.md"
description: "Applied Optoelectronics Inc. (NASDAQ: AAOI) shares fell 11.87% to $90.34 after a 22% surge following a strong earnings report. The company reported a smaller-than-expected loss and record revenue of $134.3 million, with guidance for Q1 revenue between $150 million and $165 million. Analyst upgrades followed, with price targets raised by Rosenblatt to $125, Needham to $80, and B. Riley to $54. Despite the drop, the stock remains significantly above key moving averages and has increased 478.50% over the past year."
datetime: "2026-03-03T15:48:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/277650006.md)
  - [en](https://longbridge.com/en/news/277650006.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/277650006.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277650006.md) | [繁體中文](https://longbridge.com/zh-HK/news/277650006.md)


# Applied Optoelectronics Stock Retreats After Monster Rally

**Applied Optoelectronics Inc.** (NASDAQ:AAOI) shares are retreating Tuesday, giving back some ground after Monday’s blistering 22% one-day surge.

## **What Sparked Monday’s Run**

Monday’s surge traced directly back to last week’s blowout fourth-quarter earnings report, released Feb. 26. The company posted an adjusted loss of 1 cent per share, better than Wall Street’s consensus forecast of an 11-cent loss. Revenue surged approximately 34% year over year to $134.3 million, a record quarter, beating analyst estimates handily.

Management guided first-quarter revenue of $150 million to $165 million, topping consensus expectations of roughly $145 million.

The company also projected a non-GAAP net loss of no worse than 9 cents per share, with a path to breakeven as it scales next-generation datacenter products.

## **Analyst Upgrades Followed The Print**

The stock carries a Buy Rating with an average price target of $63.80.

Recent analyst moves include:

-   **Rosenblatt**: Buy (Raises Target to $125.00) (Feb. 27)
-   **Needham**: Buy (Raises Target to $80.00) (Feb. 27)
-   **B. Riley Securities**: Upgraded to Neutral (Raises Target to $54.00) (Feb. 27)

## **Short Interest**

Short interest fell from 11.57 million to 10.62 million shares in the most recent reporting period, representing 16.11% of the float. At the recent average daily volume of 5.09 million shares, shorts would need roughly 2.09 days to cover.

## **Technical Analysis**

Over the past year, Applied Optoelectronics has seen an impressive rally, with its stock price increasing by 478.50%. The stock is currently trading significantly above its key moving averages, which signals strong bullish momentum.

Specifically, it is 79.1% above its 20-day Simple Moving Average (SMA) and 160.3% above its 100-day SMA. Despite today’s drop, the stock remains closer to its 52-week high of $110.00 than its low of $9.71.

The technical indicators further illustrate this strength, with the Relative Strength Index at a high 84.84.

**AAOI Price Action:** Applied Optoelectronics shares were down 11.87% at $90.34 at the time of publication on Tuesday, according to Benzinga Pro data.

_Image via Shutterstock_

### Related Stocks

- [Applied Optoelectronics, Inc. (AAOI.US)](https://longbridge.com/en/quote/AAOI.US.md)

## Related News & Research

- [AOI receives new order for 800G data-center transceivers from major hyperscale customer](https://longbridge.com/en/news/281179229.md)
- [AOI Receives New Upsized Order for 800G Data Center Transceivers from Major Hyperscale Customer | AAOI Stock News](https://longbridge.com/en/news/281570498.md)
- [Investors Purchase High Volume of Applied Optoelectronics Call Options (NASDAQ:AAOI)](https://longbridge.com/en/news/280349307.md)
- [AOI showcases 25dBm ultra-high-power ELSFP for next-gen AI infrastructure](https://longbridge.com/en/news/281214703.md)
- [Is Applied Optoelectronics, Inc. (AAOI) a good stock to buy now?](https://longbridge.com/en/news/280031010.md)