Applied Optoelectronics surges after stock warrant deal with Amazon

Shares of fiber-optic network component maker Applied Optoelectronics AAOI.O jump 56.0% to $24.76 premarket

AAOI issues Amazon.com AMZN.O warrant to purchase up to about 7.9 mln of its shares at an exercise price of $23.6954 per share

Rosenblatt Securities says it believes AMZN intends to primarily purchase full transceivers that AAOI is making at its automated manufacturing facility in Taiwan

Brokerage says this deal is a "huge positive" as bears can no longer say AAOI does not have any large 400G and 800+G transceiver customers, and that the co is late to the market

These optical transceivers, capable of high-speed data transmission, are widely used in domains such as data centers, telecommunications and enterprise networks

AMZN has taken warrants from smaller vendors as an incentive so that it can participate in the stock price upside of its smaller technologically-nimble suppliers - brokerage

Up to last close, AAOI shares have fallen ~57% this year