Analyst PerceptionThere are more questions than answers regarding Microsoft's relationship with Applied Optoelectronics.
Earnings Guidance1Q24 revenues of $41mn, below the consensus of $44mn, and 2Q24 revenue guidance of ~$44mn, compared to the $57mn consensus, were disappointing due to slower initial ramp of Microsoft 400G orders and slower start to the DOCSIS 4.0 amplifier cycle.
Stock RatingAnalysts have downgraded the stock from Buy to Neutral with a price target reduced from $22 to $16.