New York, Feb 1, 2026, 07:03 EST — Markets have closed.
- Applied Optoelectronics shares jumped 10.21% on Friday, following a volatile session.
- A regulatory filing revealed the company’s chief legal officer offloaded 12,000 shares through a pre-arranged plan
- Investors are zeroing in on late-February earnings, watching closely for updates on high-speed data-center optics progress
Applied Optoelectronics (AAOI.O) shares closed Friday up 10.21% at $43.61, hitting a session peak of $48.31 near the top of its 52-week range. The stock edged a bit higher in after-hours trading. (StockAnalysis)
AAOI has morphed back into a momentum stock — rapid price swings, heavy volume, sharp reversals. This style attracts short-term traders, setting up Monday’s open (Feb. 2) as a crucial moment to see if the rally holds or falls apart.
It also shines a new spotlight on insider moves. When a stock is already volatile, a late-week reveal of executive selling can sway sentiment as traders scramble for clues to either jump in or pull back.
A filing with the U.S. Securities and Exchange Commission revealed Senior Vice President and Chief Legal Officer David C. Kuo sold 12,000 shares on Jan. 28. The shares went for a weighted average price of $45.055, generating roughly $540,660 in proceeds. According to the form, the sales were executed under a Rule 10b5-1 plan — a prearranged insider trading program — set up on May 15, 2025. Kuo still holds 114,636 shares. (SEC)
AAOI’s shares have surged roughly 22% in the last five sessions, a sharp move that could reverse quickly if trading volume dries up and investors begin to cash out. (MarketScreener)
The longer bull case hinges on speed upgrades in data centers. On Dec. 10, the company announced its first volume order for 800-gigabit-per-second (800G) data-center transceivers — optical modules that connect servers to switches — from a “major hyperscale customer.” CEO Thompson Lin described it as “our first volume order for our 800G products,” while CFO Stefan Murry noted the customer had placed “orders for nearly $22 million worth of 400G transceivers” so far this year. (GlobeNewswire)
Applied Optoelectronics produces fiber-optic networking equipment used in internet data centers, cable TV, telecom, and fiber-to-the-home sectors, according to its annual report. (SEC)
Peers showed a mixed bag on Friday. Lumentum Holdings climbed roughly 2.8%, but Coherent Corp and Fabrinet slid around 1.8% and 1.4%, respectively — with AAOI standing out as the biggest mover.
But this trade carries clear risks. A sudden rally could reverse just as fast if upcoming updates reveal slower shipment schedules, weaker orders from major clients, or margins that fail to match growth expectations. Insider selling—even through a 10b5-1 plan—could deepen concerns in a stock that’s already behaving like a crowded room.
Traders will be keeping an eye on whether AAOI can stay above the low-$40s following last Friday’s surge, along with any new filings or customer updates. The next key event on the calendar is the company’s quarterly earnings report, expected after the close on Feb. 25, according to market sources. (MarketBeat)
