Replies to post #107836 on Savvy Trades and Investments

[wadegarret]

Value- AAOI

All I can tell you is that revenues are being guided for 50% growth in the Sept qtr vs the June qtr, with break even earnings. The company is guiding for non gaap margins to be 30% for the Sept qtr vs 25% for the June qtr. In addition, although Microsoft has always been a customer, the $300M is a result of an upgrade to a greater contract, and revenues will not start to be recognized till Q1 2024. Thing is, this upgrade by Microsoft is as a result data center upgrades. My belief is, earnings will be guided positive for the dec qtr, and grow throughout 2024, as more companies upgrade their data centers. AAOI is a cult like stock, and very volatile, but here at $7.70, I belief it's a strong entry.