Applied Optoelectronics Inc (NASDAQ: AAOI) is having an incredible time in the market at the moment, and for good reason. Minutes ago, takeover rumors started to circulate all over social media, leading to excitement among investors and sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:05), AAOI is trading at $68.51 per share after a gain of $2.67 per share (4.05%) thus far today.
AAOI Spikes On Takeover Chatter
As mentioned above, Applied Optoelectronics is having an incredible time in the market at the moment, thanks to rumors that suggest that the company may be taken over. While digging into these rumors, the CNA Finance team was unable to uncover the original source of the rumors, and to be quite honest, the rumor is vague at best. While it is suggested that the company will be taken over, there’s no insinuation of who may be interested in taking the company over, nor at what price.
This brings us to an important point. The reality is that takeover rumors are nothing new to the market. In fact, they take place quite often. Unfortunately, however, it is very rare that these types of rumors are true. In this particular case, it’s highly unlikely that a takeover will actually take place. At the end of the day, with the vague nature of the rumor, combined with such a difficult time finding the source, it simply doesn’t make sense that this one is true. So, if you’re going to trade on the news, please be sure to do so with caution.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AAOI. In particular, we’re interested in learning if there is any validity to these rumors. While we don’t believe that a takeover is going to take place, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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