Applied Optoelectronics Falls 15% to $67.40 Amid Cloud Spending Concerns
Key Facts
Applied Optoelectronics shares fell 15% to $67.40 in afternoon trading on October 30, 2026, 247WallSt reported, as cloud spending concerns spread to optics stocks tied to AI infrastructure. The website linked the selloff to investor concerns following results from major technology companies. The price cited in the report differs from the stock’s latest available close: $79.19 on October 29, compared with $82.22 on October 28, according to EL7 data. The stock had closed at $67.51 on October 23 before rising to $82.22 on October 28. Coherent and Marvell shares also fell in the previous session, closing at $237.22 and $218.34, respectively, on October 29, according to EL7 data.
Amazon’s results present investors with a mixed picture: strong demand for cloud services alongside high capital spending and pressure on cash flow. Amazon Web Services sales rose 39.3% to $46 billion in the quarter ended September 30, 2026, compared with growth of 37% in the previous quarter, according to the Associated Press. Chief Executive Andy Jassy told investors he still expects capital spending of $220 billion in 2026, much of it going toward building AI data centers. At the same time, the company recorded negative free cash flow of $42.4 billion for the 12 months ended September 30, as AI investment continues. Amazon shares fell 7% in after-hours trading on October 29, as investors focused on core operations and the cash burn associated with AI investment, according to AP.
Alphabet’s results showed that the infrastructure investment wave extends beyond one company, as concerns persist over the amount of cash directed toward capital spending. The company’s purchases of property and equipment exceeded $51 billion in the latest quarter through September 2026, according to AP. Alphabet Class A shares fell 12.6% on October 29, their worst daily performance since they began trading more than 20 years ago, the same source reported. The decline followed the company’s announcement that free cash flow fell as purchases of property and equipment increased. Alphabet said it expects a significant increase in capital expenditures in 2027. It added that more details will be presented on its fourth-quarter results call, putting future spending plans at the forefront of investor attention.
Share price moves highlight optics companies’ sensitivity to data center buildout expectations, at a time when AWS figures support demand for cloud services while spending plans and cash flow indicators raise investor questions about the cost of expansion. Bloomberg reported that Marvell was in advanced talks to buy Lumentum, with an announcement possible in the week after the October 29 report. Bloomberg valued Lumentum’s market capitalization at about $85 billion at the time of the report and said a potential deal could be entirely in stock. The development adds an anticipated event to the landscape tracked by optics stocks, alongside investors’ attention to details of Alphabet’s spending on its fourth-quarter results call. In trading on October 30, 247WallSt reported an intraday decline in AAOI, while the closing prices available from EL7 remain figures from earlier sessions.