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Wendy Boyd

Optical Stocks In Focus Following Apple's Deal With Finisar

Apple, Inc.  announced Wednesday a new $390 million investment in vertical-cavity-surface-emitting-laser (VCSEL) supplier Finisar Corporation , sending shares of the stock soaring by 29 percent. Other fiber optic and optics technology stocks are moving in sympathy following the news, creating some major trading opportunities on Wednesday.

What Does It Mean?

Loup Ventures analyst Gene Munster wrote that Apple is clearly doubling down on its bet on augmented reality with the Finisar deal.

“But more importantly, it locks down VCSEL supply, which will make it tough for other smartphone players to compete longer-term in AR,” Munster wrote.

On Wednesday morning, Finisar competitors Lumentum Holdings Inc  and II-VI, Inc.  shares plunged 5.9 percent and 2.9 percent, respectively.

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