AAOI · PEAD ↓ 100

Applied Optoelectronics reported Q3 2026 EPS of $0.10 on 2026-11-05, beating the $0.08 consensus by $0.02 (+25.0%).

Print-day reaction was −20.9% versus the prior close — a severe de-rating despite the EPS beat, suggesting the market found something it didn't like beyond the headline number. The overnight gap to the T+1 open recovered +4.5%, a partial bounce that hinted at possible stabilisation after the initial flush. Over the following two trading days (T+1 close through T+3 close), the stock drifted a further −3.6%, erasing the overnight bounce and then some, with no sustained recovery. Cumulative abnormal return of −16.3% versus SPY.US confirms a PEAD short read; per the documented drift pattern, the signal holding window runs through 2027-02-02.