Ciena shares fall after strong results, AI trade takes a hit

Ciena Corp. stock is down a bit for the abbreviated holiday week, as traders look ahead to the June 4 earnings release. Investors are watching to see if the report justifies the buzz around AI-networking names. U.S. markets stay shut over weekends, and the NYSE says May 25, Memorial Day, is a market holiday in 2026.

Ciena Corporation’s AI-networking surge just got a more cautious look from Wall Street: Rothschild & Co Redburn initiated the stock at Neutral with a $416 price target on Friday, noting that some of the optical-networking gains are likely already factored into the share price. Analyst Mike Harrison pointed out that as generative AI spending becomes actual network construction, copper links should “increasingly give way” to optical fiber.

BlackRock Inc. disclosed an 8.0% stake in Ciena Corporation—11.27 million shares—in an updated Schedule 13G filed Friday. According to the filing, those shares are held via various BlackRock business units and weren’t picked up with any intention to alter or direct control of the company.