Photonics Sector Decline Driven by Algorithm Trading, Not Fundamentals: Serenity

According to BlockBeats, on June 1, Serenity noted that the recent decline in the photonics sector is primarily driven by algorithm-based trading rather than fundamental changes. The analyst cited the stock performance of Coherent (LITE) as influencing related companies such as AAOI and Sivers. Despite improving fundamentals at some firms like Applied Optoelectronics (AAOI) in business with AMD and Nvidia, their high beta exposure makes them more susceptible to programmatic selling during sector adjustments.
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