Serenity said it remains bullish on Applied Optoelectronics, known by its AAOI ticker, while criticizing the timing of the company’s roughly $600 million ATM (at-the-market stock issuance) financing. Serenity argued the offering should have waited until AAOI completed certification for 1.6T optical modules, expected within the next few weeks, or used a structure such as convertible debt priced above the market. Instead, the company launched the ATM after its share price fell from $220 to $130, potentially creating short-term structural selling pressure each time shares are issued. Serenity said AAOI’s capacity constraints and strong demand visibility make it more attractive than POET, even though investors can criticize management’s financing decisions while continuing to hold the stock for the long term. AAOI’s second-quarter revenue rose 86% year over year and exceeded expectations, but weak third-quarter guidance and the ATM have heightened concerns about near-term valuation and liquidity.