Shares of optical networking company Infinera (NASDAQ:INFN) were up about 12.7% as of 11 a.m. EST on Friday. There was no company-specific news driving the gains. The stock has tumbled nearly 60% from its 52-week high, so this may just be a case of a beaten-down stock bottoming out.
Infinera has taken shareholders on a wild ride over the past few years. The stock rocketed to around $24 per share in 2015, but it lost all those gains in 2016 as revenue began to contract. Shares are now down about 80% from that multiyear high.
Infinera's latest quarterly report wasn't impressive. Revenue edged up just 4% year over year, and the company posted a loss on both a GAAP and non-GAAP basis. The company pointed to some big orders being delayed, and management talked about a spending pause from certain customers.
The stock took a hit when those numbers were reported in November. The stock market sell-off in December made things worse. With Friday's surge, Infinera stock has started to claw back some of those losses.
Infinera expects revenue to nearly double in 2019 with the acquisition of privately held competitor Coriant. The company sees the issues with weak demand in the third quarter as temporary, and it's expecting a rebound this year.
Friday's rally doesn't change the story for investors. But it could signal that the stock has finally bottomed out.