Small-Cap Tech Stocks to Buy: Applied Optoelectronics Inc (AAOI)
Applied Optoelectronics Inc (NASDAQ:AAOI) is another company in the fast-growing fiber optic space.
For a great deal of its public life (it IPO’d in late 2013) it hasn’t made much of a stir. But over the past year, the stock is up 177%. And over the past three months it’s up 100%-plus. Just in February it was up 49%.
We have reached the limits that copper wire can take us. Early on in the first wave of the internet boom, copper was touted as a viable source of moving information from point A to point B. After the dot-com bubble burst in 2000, most optical networking companies dried up and blew away.
Some bigger telecoms were still committed to laying fiber — and investing in fiber optic networking — but smaller players didn’t have a lot of places to sell their wares.
That has changed now. And as the world recovers from the financial crisis, more companies see technology as the answer to their needs more than manpower. This stands to benefit AAOI mightily.