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Marcus Korsten
Emily Appleton

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James Windsor, Senior Portfolio Manager at Marcus Korsten in Switzerland (Applied Optoelectronics)
This maker of fiber-optic networking products is having a rough year in 2018., 9/14/2018 - Applied Optoelectronics shareholders have seen their stock take a 43% nosedive over the last 52 weeks, including a 22% drop in the most recent month.

Much of the recent weakness in this stock rests on the brewing trade war between China and the U.S., since Applied Optoelectronics does a lot of its business in the Asian country. And while it is true that the company can shift its manufacturing volume out of China and into neighboring Taiwan, with which America has no tariff dispute at the moment, wages and other operating costs are higher there -- which could balance out the tariff savings of making that move.

All that being said, Applied Optoelectronics remains a leader in its industry. The entire optical networking industry is stuck in a holding pattern at the moment, awaiting a global wave of network infrastructure upgrades as the 5G wireless standards start to replace the aging 4G generation. Those meaty wireless networks will require equally muscular back-end connections to the internet at large, which is where fiber optics come into play.....


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