AAOI's Q4 revenue guidance fell short of expectations, its share price plunged 16% before rebounding rapidly.

Optical module manufacturer Applied Optoelectronics (AAOI) released its third-quarter financial results: revenue surged approximately 128% year-over-year to $270 million, while net income swung to a $6.3 million profit from a $17.94 million loss in the year-ago period. However, the company’s fourth-quarter revenue guidance ranges from $385 million to $420 million, with the upper limit still below the market expectation of $427 million. Separately, due to power access and construction progress issues, AAOI expects its U.S. production expansion in 2027 will take longer than previously projected. Following the earnings announcement, AAOI contracts on Hyperliquid briefly dropped from $46.88 to $39.36, a roughly 16% decline. The price quickly rebounded afterward, climbing to $46.30 by midday and recouping most of the post-earnings losses; it remains down around 22.1% over the past 24 hours. Contract open interest rose during the price drop, jumping from approximately 42,000 to 52,300 units, a roughly 24.4% increase. The 24-hour trading volume stood at around $13.45 million.