Can Acacia Communications Survive the ZTE Disaster?
'Shares of Acacia Communications(NASDAQ:ACIA) plunged 36% with the rest of the optical sector on April 16 after the U.S. Department of Commerce banned all American companies from selling components to Chinese tech giant ZTE(NASDAQOTH:ZTCOY).', 'Acacia was hit the hardest, since 30% of its sales came from ZTE last year. What happened to Acacia?', "That's why the stock surged from its IPO price of $23 to almost $120 in the first four months. However, a secondary offering near that peak popped the bubble, and an unexpected slowdown in network upgrades in China caused its growth to grind to a halt.", "Prior to the ZTE ban, analysts had expected its revenue to dip another 4% this year. But with ZTE's orders now blocked, it's reasonable to assume that Acacia's annual sales could drop by at least 20% to 30%."