尽管应用光电子（纳斯达克股票代码：AAOI）在过去7天内损失了1亿美元的市值，但股东在1年内仍上涨了616％
AppliedOptoelectronics,Inc.(NASDAQ:AAOI)shareholdershaveseenthesharepricedescend20%overthemonth.Butthatcannoteclipsethespectacularsharepricerisewe'veseenoverthelasttwelvemonths.Infact,itisup616%inthattime.Sowewouldn'tblamesellersfortakingsomeprofits.Whilewinnersoftenkeepwinning,itcanpaytobecautiousafterastrongrise.Anyonewhoheldforthatrewardingridewouldprobablybekeentotalkaboutit.
Inlightofthestockdropping14%inthepastweek,wewanttoinvestigatethelongertermstory,andseeiffundamentalshavebeenthedriverofthecompany'spositiveone-yearreturn.
ViewourlatestanalysisforAppliedOptoelectronics
BecauseAppliedOptoelectronicsmadealossinthelasttwelvemonths,wethinkthemarketisprobablymorefocussedonrevenueandrevenuegrowth,atleastfornow.Whenacompanydoesn'tmakeprofits,we'dgenerallyexpecttoseegoodrevenuegrowth.Somecompaniesarewillingtopostponeprofitabilitytogrowrevenuefaster,butinthatcaseonedoesexpectgoodtop-linegrowth.
InthelastyearAppliedOptoelectronicssawitsrevenuegrowby1.5%.That'snotaveryhighgrowthrateconsideringitdoesn'tmakeprofits.Soit'strulysurprisingthatthesharepricerocketed616%inasingleyear.We'rehappythatinvestorshavemademoney,butwecan'thelpquestioningwhethertheriseissustainable.Thisisanexampleofthehugeprofitssomeluckyshareholdersoccasionallymakeongrowthstocks.
Thegraphicbelowdepictshowearningsandrevenuehavechangedovertime(unveiltheexactvaluesbyclickingontheimage).
NasdaqGM:AAOIEarningsandRevenueGrowthJanuary15th2024
Welikethatinsidershavebeenbuyingsharesinthelasttwelvemonths.Evenso,futureearningswillbefarmoreimportanttowhethercurrentshareholdersmakemoney.Sowerecommendcheckingoutthisfreereportshowingconsensusforecasts
ADifferentPerspective
It'snicetoseethatAppliedOptoelectronicsshareholdershavereceivedatotalshareholderreturnof616%overthelastyear.ThatgainisbetterthantheannualTSRoverfiveyears,whichis1.0%.Thereforeitseemslikesentimentaroundthecompanyhasbeenpositivelately.SomeonewithanoptimisticperspectivecouldviewtherecentimprovementinTSRasindicatingthatthebusinessitselfisgettingbetterwithtime.Whileitiswellworthconsideringthedifferentimpactsthatmarketconditionscanhaveontheshareprice,thereareotherfactorsthatareevenmoreimportant.Considerrisks,forinstance.Everycompanyhasthem,andwe'vespotted2warningsignsforAppliedOptoelectronicsyoushouldknowabout.
AppliedOptoelectronicsisnottheonlystockthatinsidersarebuying.Forthosewholiketofindwinninginvestmentsthisfreelistofgrowingcompanieswithrecentinsiderpurchasing,couldbejusttheticket.
Pleasenote,themarketreturnsquotedinthisarticlereflectthemarketweightedaveragereturnsofstocksthatcurrentlytradeonAmericanexchanges.
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ThisarticlebySimplyWallStisgeneralinnature.Weprovidecommentarybasedonhistoricaldataandanalystforecastsonlyusinganunbiasedmethodologyandourarticlesarenotintendedtobefinancialadvice.Itdoesnotconstitutearecommendationtobuyorsellanystock,anddoesnottakeaccountofyourobjectives,oryourfinancialsituation.Weaimtobringyoulong-termfocusedanalysisdrivenbyfundamentaldata.Notethatouranalysismaynotfactorinthelatestprice-sensitivecompanyannouncementsorqualitativematerial.SimplyWallSthasnopositioninanystocksmentioned.