Applied Optoelectronics (AAOI) stock plummeted 10.95% in Tuesday's intraday trading session, following a downgrade by B. Riley analysts.
B. Riley lowered its rating on AAOI from Buy to Neutral, citing recent checks that indicate a weakening demand outlook for the company's 400G datacenter products. Although the firm maintained its $14 price target, the downgrade weighed heavily on investor sentiment.
The sharp sell-off suggests that investors are growing increasingly concerned about Applied Optoelectronics' growth prospects, as the company navigates a challenging environment for its core products.
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