Replies to post #108509 on Savvy Trades and Investments

[wadegarret]

R59- AAOI($8.49) ah

Yes, disappointing Q4 of only 5% revenue growth over Q3 on average guidance. However margins were up almost 10% higher, and AAOI expects that to continue. Problem is, break even for Q4 is because the fully diluted share count went up from 29M to 35M. Still, being that Q2 was 50% higher revenues than Q3, and Q4 is still higher than Q3, it's not all that bad. Yes, this is a 2024 story. The Microsoft contract alone should add $.70 to eps, so still hard to believe they don't make at least $1 in eps in 2024, even assuming 39M fully diluted shares, which is the max they expect at this point. I am holding shares as a longer term investment at this point.