Applied Optoelectronics shares drop on new $600M equity offering

Applied Optoelectronics (AAOI) shares fell approximately 10% in after-hours trading on Friday, August 22, following the announcement of a $600 million at-the-market equity offering. This marks the company’s third major capital raise in 2026, having previously secured $500 million in April and $600 million in May. Total capital raised via these programs year-to-date is approximately $1.05 billion, raising concerns regarding shareholder dilution.

Despite the stock decline, Applied Optoelectronics reported record second-quarter revenues of $191.9 million, an 86% increase year-over-year. The company projects third-quarter revenues between $255 million and $290 million.

Separately, O-I Glass (OI) shares experienced a price gap up on Friday, opening at $6.82 after a previous close of $6.38. The company has seen various analyst adjustments recently, including a downgrade from BNP Paribas Exane and price target reductions from Truist Financial and UBS Group, though it maintains a consensus rating of ‘Hold’ with a target price of $10.31.