Applied Optoelectronics Inc. (NASDAQ:AAOI) stock fell more than 12% during Monday’s premarket session after the optical networking company launched a $600 million at-the-market equity offering.
The potential stock sale raised dilution concerns among investors. Broader market weakness also added pressure, with Nasdaq futures down 0.49% and S&P 500 futures off 0.12%.
Still, AAOI has gained 412.82% over the past 12 months. That outsized rally leaves the stock vulnerable to sharp pullbacks when investors reduce exposure to high-momentum names.
Launches $600 Million Stock Sale Program
Applied Optoelectronics entered into an equity distribution agreement Friday with Raymond James and Needham, according to a Form 8-K filed with the Securities and Exchange Commission.
