Applied Optoelectronics Jumps $16 to $146 as Optical Demand Outruns Capacity — 21.14% Upside to $178 or Back to $122

Applied Optoelectronics (AAOI) traded $146.94 on Wednesday, September 2, up $16.86 or 12.96% as of 2:00:42 p.m. EDT, after touching $149.46 for a gain of $19.38 and 14.9% earlier in the session. The prior close was $130.08. In one session the optical networking supplier added roughly $920 million in market value and recovered ground it had surrendered over the previous ten trading days.

The move came on a day when the broad tape offered no help to high-beta growth. The Nasdaq Composite managed 26,110.72 for a gain of 0.04%, the 10-year Treasury yield hit 4.814%, and long-duration software names got smoked — MongoDB fell 13.32%, Credo Technology dropped 16.04%, Palo Alto Networks lost 8.59%, Cadence Design Systems shed 7.60%. AAOI ran 12.96% through all of it.

That divergence is the first clue about what is actually driving this stock. It is not trading as a rate-sensitive growth name. It is trading as a direct derivative of AI data center capital expenditure, and Tuesday night handed that trade a fresh number to work with.

Dell Technologies posted record fiscal Q2 revenue of $47 billion, up 58% year over year, booked $60.9 billion in AI server orders during the quarter, exited with a record $95 billion backlog, and raised full-year guidance by $25 billion to $192 billion. AI-optimized server revenue reached $16.4 billion, double the prior year. Dell shares ran 10.15% to $467.44. Hewlett Packard Enterprise added between 3.8% and 5.4%.

Every one of those AI servers needs optical interconnect. That is the read-across, and AAOI is one of the purest listed expressions of it.

The company reported Q2 2026 revenue of $191.9 million on August 6 — a fifth consecutive record quarter, up 86% year over year and 27% sequentially — and guided Q3 to a $255 million to $290 million range, implying 130% annual growth at the midpoint. Full-year 2026 revenue is targeted at approximately $1.1 billion against $455.72 million in 2025.

The thesis of this forecast is that AAOI has a genuine demand problem in the best sense — capacity, not orders, is the constraint — and a genuine funding problem in the worst sense. A $600 million at-the-market equity program announced August 21 sits directly on top of the growth story, and it is why this stock trades 26% below its peak while revenue triples.

The Chart Is A Parabola That Already Broke Once

The price history here is not a trend. It is a series of violent repricings, and understanding the amplitude matters more than the direction.

At $125.45 the stock carried a 216.8% year-to-date gain, which implies a December 31 close near $39.60. At $146.94 that year-to-date advance runs to roughly 271%. Over twelve months the stock has gained 290.8%, ranking it among the top 60 performers by 52-week price change in the U.S. market.

The path was anything but linear. The stock closed $110.13 on a 16.8% up-session in late July after trading as low as the $95 area. It jumped 13.34% in early August, then 13% to $140.72 on August 7 following the Q2 print. It ran above $200 at the peak, which established the $200 to $220 zone as the exhaustion band. Then it broke.

The August drawdown sequence was brutal and specific. Shares fell 3.32% on Friday, August 21 after the $600 million ATM filing hit, dropped about 10% in after-hours that evening, and opened down 12.3% premarket on Monday. On Monday, August 24 the stock fell 16.3% intraday and was still down 11.7% by midday. A separate session saw a 17% decline to $114.93. The stock closed $122.19 in the aftermath.

From the $200-plus peak to the $110.13 area, the drawdown measured roughly 45%. From $110.13 to Wednesday's $149.46 is a 35.7% recovery in a matter of days.

That amplitude defines the trading character. Options positioning ahead of the August earnings print implied a 13.3% post-earnings move — and the stock has delivered single-session moves of 10%, 11.7%, 12.96%, 13%, 13.34%, 13.5%, 14.7%, 15.31%, 16.3%, 16.8%, 17% and 20% across the past two months. A 2x daily leveraged ETF now exists tied to the stock, which mechanically amplifies both directions through end-of-day rebalancing.

Key levels from $146.94: the prior close at $130.08 sits 11.48% below, the $122.19 consolidation shelf 16.84% lower, the $114.93 washout low 21.79% down, and $110.13 a full 25.05% beneath. Overhead, the $200 exhaustion zone requires a 36.11% advance.

This is not a stock that trends. It gaps.

Q2 Delivered A Fifth Straight Record And A 296% EPS Beat

The August 6 print is the operating foundation everything else rests on, and the numbers were substantially better than the setup implied.

Revenue came in at $191.92 million against a $190.48 million estimate — up 86% year over year and 27% sequentially, marking the fifth consecutive quarter of record revenue. Non-GAAP earnings per share printed $0.06 against a $0.01 to $0.02 consensus, a 296.48% surprise, and returned the company to non-GAAP profitability ahead of its own guidance.

The trajectory into that quarter matters. Q1 2026 revenue landed at $151.14 million, up 51.4% year over year, the fourth consecutive record. Data center revenue in Q1 hit $81.40 million against $32.05 million a year earlier — more than a double — driven by the 800G transceiver ramp. Management confirmed the first volume shipment of 800G product to a large hyperscale customer during Q1, which de-risked the entire product cycle in a single sentence.

The sequential progression tells the story cleanly: $151.14 million in Q1, $191.92 million in Q2, and a guided $255 million to $290 million in Q3. That is 42% sequential growth guided on top of 27% delivered.

Full-year 2025 revenue was $455.72 million, up 82.75% from $249.37 million in 2024, with losses of $38.23 million, 79.53% narrower than the prior year. Against that base, the approximately $1.1 billion full-year 2026 target represents 141% growth.

The demand characterization from management is the part worth weighing. Capacity constraints, not demand, are limiting growth. That framing is materially different from a company chasing orders. It means the revenue ceiling is set by how fast the company can build production lines, which converts the investment question from "will customers buy" to "can they manufacture."

The company's in-house developed manufacturing machinery and laser capabilities insulate it from the broader equipment supply bottlenecks currently constraining the industry — the same memory, wafer and power ceilings Dell flagged this week. Vertical integration from semiconductor laser through finished transceiver is the structural advantage, and it took twenty years to build.

Next earnings land November 5, 2026.

Q3 Guidance Beat On Revenue And Missed Badly On Earnings

The guidance breakdown is where the bull and bear cases separate, and most coverage has only looked at the top line.

Q3 2026 revenue is guided to $255 million to $290 million, a $272.5 million midpoint against a $268.11 million consensus — a beat of $4.39 million, or 1.6%. That midpoint implies 130% year-over-year growth and 42% sequential growth.

Non-GAAP gross margin is guided to 29% to 30.5%. Non-GAAP net income is guided to $10.1 million to $24 million, a $17.05 million midpoint. Non-GAAP EPS is guided to $0.11 to $0.26 against a $0.28 consensus.

The midpoint of that EPS range is $0.185 — 34% below where the Street was modeling. Even the top end of the guided range, $0.26, sits under consensus.

That is the tension in this name stated in two numbers. Revenue is being guided above expectations while earnings are being guided a third below them. The company is buying revenue with margin.

The gross margin guide of 29% to 30.5% is the constraint. Optical transceiver manufacturing at scale carries meaningful fixed cost absorption, and the 800G and 1.6T ramp requires running new lines below optimal yield while volumes build. A 30% gross margin on $272.5 million of revenue generates roughly $82 million of gross profit against an operating cost base that is expanding to support a 400,000-square-foot facility build.

The next-quarter consensus estimate stands at $0.14 per share on $268.11 million of revenue, which suggests the Street has already marked EPS down toward the middle of the guided band while holding the revenue line.

The forward setup into November is therefore asymmetric in an uncomfortable way. Revenue beats are close to assured given capacity coming online. Margin is the variable, and margin is what the guidance flagged as under pressure. A quarter that prints $290 million with 28% gross margin will be read very differently than one that prints $260 million at 31%.

GAAP Losses Are Widening While Non-GAAP Turns Positive

The distance between the two accounting frames deserves explicit attention, because the headline "returned to profitability" describes only one of them.

GAAP net income for the most recent quarter came in at negative $22.78 million, against negative $14.28 million in the prior quarter. The loss widened by $8.5 million sequentially while revenue grew 27%. EBITDA sits at negative $32.07 million, producing an EBITDA margin of negative 5.90%.

Non-GAAP EPS of $0.06 and GAAP net income of negative $22.78 million describe the same three months. The gap is stock-based compensation, amortization, and the costs of a company scaling manufacturing footprint faster than revenue converts to cash.

Employee equity is a live factor. The company issued equity grants to employees under an inducement plan in early August, and headcount stood at 4,690 as of September 1, 2026. Scaling a workforce and a physical footprint simultaneously loads the GAAP expense line ahead of the revenue it supports.

The balance sheet carries $508.8 million in cash, funded substantially by equity issuance rather than operations. The company has raised $538.8 million through an at-the-market offering to date, and separately exchanged $76.7 million of 2026 convertible notes for 2030 notes, shares and cash, alongside a $33.7 million direct offering.

The reason this matters for the forecast rather than for accounting purists: a company generating negative $32.07 million of EBITDA cannot self-fund a $300 million facility expansion. Every dollar of capacity investment either comes from the balance sheet or from new equity. The cash position covers the announced Pearland spend with room, but it does not cover the working capital required to support $1.1 billion of revenue growing toward a substantially larger 2027 number.

That arithmetic is what produced the August 21 filing, and it is what will produce the next one.

The bull framing is that GAAP losses at this stage of a capacity ramp are the cost of capturing an AI infrastructure cycle that arrives once. The bear framing is that a business with negative EBITDA at $191.9 million of quarterly revenue has not yet demonstrated the model works at scale.

Both are currently true.

The $600 Million ATM Cost Shareholders A Quarter Of The Stock

The single most important corporate action of the past month is the equity program, and the market's reaction to it was unambiguous.

On August 21, the company entered into an Equity Distribution Agreement establishing a new $600 million at-the-market stock offering. The filing landed Friday. Shares fell 3.32% into the close, dropped roughly 10% in after-hours, and opened Monday down 12.3% premarket. By Monday, August 24 the stock had fallen 16.3% intraday.

Peak to trough across that sequence, the stock lost roughly a quarter of its value.

The context sharpens the reaction. This is a second program, layered on top of the $538.8 million already raised through a prior at-the-market facility. Combined authorized and executed equity issuance now approaches $1.14 billion against a market capitalization near $8.0 billion at Wednesday's price.

Dilution math at current levels: $600 million of stock sold at $146.94 issues roughly 4.08 million shares against approximately 54.4 million outstanding — 7.5% dilution. Sold at $110, the same $600 million issues 5.45 million shares, or 10%. The lower the stock trades, the worse the dilution, which creates a reflexive problem: weakness in the shares increases the share count required to fund the same capacity.

That reflexivity is precisely why the announcement produced a 25% drawdown rather than a 7.5% one.

Compounding the signal, senior executives conducted significant insider share sales during the year. Management selling into a parabolic advance while the company issues equity is a combination the market reads unfavorably regardless of the individual circumstances behind each transaction.

The counterargument from the company's side is that funding will diversify beyond equity going forward. Debt capacity exists — the convertible exchange extending 2026 notes to 2030 demonstrates access — and a business guiding to $1.1 billion of revenue with positive non-GAAP net income has a considerably better credit profile than it did two years ago.

For the forecast, the practical consequence is that every rally toward $150 and above carries a supply overhang, because that is precisely where the company would rationally sell stock under the program. Wednesday's 12.96% advance into $149.46 walked directly into that zone.

Pearland Is A $300 Million Bet On 1.6T Arriving On Schedule

The capacity build is the operating answer to the demand constraint, and its scale explains the funding requirement.

The company has begun construction on a nearly 400,000-square-foot, $300 million expansion of its Pearland, Texas manufacturing campus, purpose-built to ramp production of 800G and 1.6T optical transceivers for AI and cloud data centers. The groundbreaking itself moved three optical transceiver stocks simultaneously when it was announced.

The strategic logic is domestic manufacturing at a moment when supply chain geography carries a policy premium. Reports of a potential Chinese transceiver ban lifted the entire optical complex in early August, and Commerce Secretary Howard Lutnick confirmed Wednesday that the administration is developing a semiconductor tariff framework — targeted policy where domestic builders pay nothing and importers pay to enter the market. A company with automated U.S. production and in-house laser fabrication is positioned on the correct side of that line.

The product roadmap behind the facility spans 100G through 1.6T. The company has announced 800G data center transceivers for a major hyperscale customer and detailed work on 1.6T. It introduced a 400-milliwatt narrow-linewidth continuous-wave pump laser designed to support silicon photonics and co-packaged optics architectures used in AI data centers, alongside a 25dBm external laser small form-factor pluggable. It has described vertically integrated design and manufacturing for 100G VCSELs at 850nm, used in 800G OSFP multimode transceivers.

Management framed a $471 million data center revenue marker for mid-2027, which against Q1 2026's $81.40 million data center print implies the segment scaling by a multiple over five quarters.

The risk in this commitment is symmetrical to its ambition. Committing $300 million of capital and 400,000 square feet to a demand curve that has been vertical for four quarters creates execution and cyclical exposure if orders do not track the larger footprint. Optical transceiver history is littered with capacity built into a cycle that turned — this same company built into the 2017 and 2021 cycles and spent years absorbing the aftermath.

The difference this time is that the demand is coming from hyperscale AI clusters with multi-year build schedules and, in Dell's case, a $95 billion visible backlog. That is a longer-dated order book than the industry has ever had.

The 100G Memory Bottleneck Is The One Live Operational Problem

Buried in the Q2 commentary is a supply constraint that has nothing to do with optics and everything to do with the broader AI hardware squeeze.

The company flagged temporary weakness in its 100G business caused by a customer's inability to source sufficient 100G switches, itself a consequence of the industry-wide memory shortage. The weakness is expected to persist until memory supply recovers.

That single sentence connects AAOI to the defining constraint of the entire 2026 hardware cycle. Memory chip prices have risen as much as 355% during 2026, with the high-bandwidth memory market for AI accelerators growing at a 41% average annual rate from $35 billion in 2025 toward $100 billion in 2028. The crunch is expected to last until 2028.

Dell's own commentary this week reinforced it: demand exceeds available supply, and memory, wafer and power availability remain hard ceilings across the industry.

For AAOI the exposure is indirect but real. Optical transceivers plug into switches. If switch OEMs cannot get memory, they cannot build switches, and transceivers destined for those switches do not ship regardless of how much optical capacity exists.

The mitigating factor is product mix. The bottleneck sits in the legacy 100G tier, not in the 800G and 1.6T products carrying the growth. AI cluster interconnect at 800G runs through a different customer set with different procurement priority, and hyperscalers building GPU clusters have the leverage to secure memory allocation that second-tier switch buyers do not.

The other segment worth tracking is the cable television and broadband business, which is not an AI story at all. The company expanded its relationship with Spectrum by deploying its QuantumLink remote network management software across Spectrum's 1.8 GHz amplifier footprint, adding software intelligence to an existing hardware position in the hybrid fiber-coaxial network. QuantumLink Central software pairs with transponders inside amplifiers using the LoRaWAN protocol, with AI, analytics, alarms and network map modules providing telemetry and automated control.

That business is lower growth and lower multiple, but it is cash-generative, diversifying, and carries software attach that the transceiver business does not. Record Q2 revenue was driven by AI and CATV demand together, not AI alone.

Valuation: 17.6x Trailing Sales, 7.3x Forward, No Earnings

There is no earnings-based valuation framework available here, which forces the analysis onto revenue multiples and leaves considerable room for interpretation.

At $146.94 with approximately 54.4 million shares outstanding, market capitalization stands near $8.0 billion. Against 2025 revenue of $455.72 million, that is 17.6 times trailing sales. Against the approximately $1.1 billion full-year 2026 target, it is 7.3 times forward sales. Annualizing the Q3 guidance midpoint of $272.5 million produces $1.09 billion and a nearly identical 7.3 times.

The earlier reference points frame how fast this has moved. At $122.19 and a $6.6 to $6.7 billion capitalization, the stock traded roughly 14 to 15 times trailing 2025 sales and about 6.5 times forward sales. Wednesday's advance added roughly two and a half turns of trailing sales and eight-tenths of a turn of forward sales in one session.

Trailing P/E is not applicable. The company does not pay a dividend. EBITDA is negative $32.07 million, so EV/EBITDA is meaningless. Price-to-sales is the only clean metric, and it requires the 2026 revenue target to be real.

What the market is underwriting at 7.3 times forward sales: that $1.1 billion is achieved, that 2027 grows substantially from there on the back of the $471 million data center marker, that gross margin expands from the guided 29% to 30.5% band toward the 35%-plus territory that would generate genuine operating leverage, and that the $600 million equity program does not need a successor.

Break any one of those and the multiple compresses hard. A published fair-value estimate circulating during the August selloff put the stock at $78 — a 46.92% discount to Wednesday's close — on the view that the AI-driven re-rating had outrun the economics.

The counterweight is that 7.3 times forward sales for a business growing revenue 141% year over year, with capacity rather than demand as the binding constraint and a domestic manufacturing footprint at a moment of tariff policy formation, is not obviously expensive against the broader AI infrastructure complex.

The uncomfortable truth is that both numbers are defensible, which is exactly why this stock moves 13% in either direction on ordinary news days.

The Optical Complex Moved Together And Then Stopped

Peer behavior is the fastest way to distinguish a company-specific catalyst from a sector rotation, and Wednesday's tape gave a mixed reading.

Lumentum (LITE) traded $914.14, up 3.83%. Ciena (CIEN) fell 3.59% to $426.90. Viavi Solutions (VIAV) declined 1.38% to $42.40. Coherent (COHR) had traded $379.26 during a prior sector-wide advance.

AAOI's 12.96% against Lumentum's 3.83% and Ciena's negative 3.59% argues Wednesday was substantially company-specific rather than a uniform sector bid. When the group has moved together — the August 7 session that saw AAOI up 13% to $140.72, Coherent up 13% to $379.26 and Lumentum up 8% to $908.11 — the correlation was obvious. Wednesday was not that.

The complex has become one of the market's most reflexive trades. The pattern over recent months reads as a series of coordinated surges and coordinated flushes: optical stocks rallying on a reported China transceiver ban, the group surging on a Texas groundbreaking, all three marquee names posting double-digit gains in a single midday, then handing back a chunk of parabolic gains in one afternoon with AAOI down 17% to $114.93 and the group following.

Credo Technology (CRDO) belongs in the frame as the AI-connectivity comparison, and its Wednesday performance is instructive. Credo reported fiscal Q1 revenue of $479 million against a $471.77 million estimate, up 115% year over year and 10% sequentially, the seventh straight quarter of triple-digit annual growth, with adjusted EPS of $1.20 topping $1.17. The stock fell 16.04% to $173.50 because GAAP gross margin dropped to 64.5% from 68.2% and operating costs surged.

A beat-and-raise met with a 16% decline is the market telling AI connectivity suppliers that growth alone no longer clears the bar. Margin does.

That is the risk sitting over AAOI's November print. Credo's guided 67% to 69% gross margin got punished. AAOI is guiding 29% to 30.5%. The businesses are structurally different — silicon versus hardware manufacturing — but the market's revealed preference this week was for margin quality, and AAOI does not have it yet.

Broadcom Reports Tonight And Sets The Tone For The Group

The immediate catalyst calendar extends past Wednesday's close, and the next print is a large one.

Broadcom (AVGO) reports after the closing bell on September 2, alongside Snowflake, Hewlett Packard Enterprise, NetApp, Five Below, Brown-Forman and FuelCell Energy.

Broadcom matters to AAOI for a specific reason: it is the dominant merchant silicon supplier for the data center switching layer that optical transceivers plug into, and its custom AI accelerator business gives it direct visibility into hyperscale cluster build schedules. Broadcom's commentary on networking revenue and AI ASIC demand functions as a forward indicator for transceiver volumes two to three quarters out.

Hewlett Packard Enterprise reporting the same evening adds a second data point on enterprise AI infrastructure, having already run 3.8% to 5.4% on the Dell read-across.

The setup into those prints is not neutral. The market has spent this week punishing AI-adjacent companies that beat on revenue and disappointed on margin — Credo down 16.04%, MongoDB down 13.32% on a 30% revenue growth quarter with an 18% EPS beat. A Broadcom print that shows networking strength with compressing margin would confirm the pattern and pressure the entire optical group Thursday.

The macro overlay is equally live. The 10-year Treasury yield hit 4.814% Wednesday, its sixth consecutive session of advance. September Fed hike odds sit near 70% for the September 15-16 meeting after Chairman Kevin Warsh's Jackson Hole remarks moved the market from roughly 35%. ADP private payrolls printed 38,000 against 47,000 expected. Friday's nonfarm payrolls report carries a +53,000 consensus after July's -23,000.

The historical relationship here is documented and direct: during the early August rally, a weaker-than-expected jobs report reduced expectations for a September hike and gave growth-oriented technology stocks a constructive backdrop, with AAOI leading the optical group higher. A firm payrolls number Friday reverses that mechanism.

For a zero-earnings, high-multiple, 271%-year-to-date stock, the rate path is not background. It is a primary input.

Where The Street Sits And Where It Disagrees

The published expectations around this stock span a remarkably wide band, which is itself informative.

The twelve-month consensus target across six covering analysts stands at $163.40, with an aggregate rating of Buy. From $146.94, that implies 11.20% upside. A separate consensus compilation puts the target at $139.40, which sits 5.13% below Wednesday's price.

The high end of published targets reached $178, raised from $151, on the strength of the 1.6T launch trajectory — 21.14% above current price. A neutral-rated target sits at $109, raised from $94, which implies 25.82% downside. A circulating fair-value estimate places the stock at $78, a 46.92% discount.

That is a spread from $78 to $178. The high target is 128% above the low. For a company with $191.9 million of quarterly revenue and a defined product roadmap, that dispersion tells you the analytical community has no consensus on what the terminal margin structure looks like or how much equity gets issued along the way.

The consensus target of $163.40 was published when the stock traded near $103, implying 57.96% upside at the time. Wednesday's price has already closed roughly two-thirds of that gap in the interim, which means the targets are stale relative to the tape and will be revised in both directions over the coming week.

The structural argument for the bulls: fifth consecutive record quarter, revenue guided to grow 141% for the full year, capacity rather than demand as the constraint, vertically integrated manufacturing insulated from the equipment bottlenecks crushing peers, domestic production at a moment of tariff formation, and a customer base building out multi-year AI clusters with visible backlogs.

The structural argument for the bears: negative $22.78 million GAAP net income widening sequentially, negative $32.07 million EBITDA, Q3 EPS guided 34% below consensus at the midpoint, gross margin guided under 31%, $1.14 billion of equity issuance authorized or executed, insider selling into the advance, and a stock that has traded from $39.60 to $200 and back to $147 inside eight months.

Neither side is wrong. They are pricing different quarters.

AAOI Price Forecast: The Levels That Decide The Next Move

Applied Optoelectronics trades $146.94, up 12.96% on the session and up roughly 271% year to date against an implied $39.60 starting point, with a market capitalization near $8.0 billion, 17.6 times trailing 2025 sales and 7.3 times the approximately $1.1 billion 2026 revenue target.

The near-term bias is constructive but the risk profile is severe, and those two statements are not in conflict.

Upside targets in sequence: $149.46 (Wednesday's intraday high, +1.72%), $163.40 (consensus target, +11.20%), $178 (high published target, +21.14%), and $200 (the exhaustion band that capped the parabola, +36.11%). Clearing $163.40 on volume with Broadcom confirming networking strength opens the $178 to $200 corridor. The obstacle above $150 is structural rather than technical — the $600 million at-the-market program gives the company every reason to sell stock into strength, and that supply arrives precisely where the chart wants to break out.

Downside targets: $130.08 (Tuesday's close, -11.48%), $125.45 (-14.63%), $122.19 (the post-ATM consolidation shelf, -16.84%), $114.93 (the washout low, -21.79%), $110.13 (-25.05%), and $109 as the neutral-rated target (-25.82%). Below that, the $78 fair-value estimate sits 46.92% lower and represents the scenario where AI infrastructure multiples compress broadly.

Three variables resolve this in order. Friday's nonfarm payrolls decides whether the September 16 Fed hike is confirmed and whether high-multiple growth gets another leg of compression. Broadcom's print tonight sets the tone for the entire optical complex. And the November 5 earnings report determines whether the 29% to 30.5% gross margin guide was a floor or a ceiling.

The verdict is bullish on the business and cautious on the stock at this entry. Revenue growing 141% with capacity as the constraint is a genuinely rare setup, and the vertically integrated U.S. manufacturing position is a durable advantage in a tariff-forming environment. But a company burning EBITDA while funding a $300 million facility through serial equity issuance, guiding EPS 34% below consensus, trading at 7.3 times forward sales after a 271% year-to-date advance, in a week where a 115%-growth peer fell 16.04% on margin, is not a stock to chase into a 12.96% session. Hold $122.19 and the structure remains intact. Lose it, and $110 comes back quickly.

That's TradingNEWS