AAOI: The AI Hype Is Priced In – A Short Trade Against Perfection
Applied Optoelectronics (AAOI) has been a poster child for the AI-driven optics rally. The stock's run and a fresh $600M ATM offering on 08/24/2026 suggest the market is pricing near-perfect execution and persistent, margin-rich growth. Fundamentals tell a different story: negative free cash flow, a stretched price-to-sales multiple, and repeated e…