MarketPR
Optical component makers are being sold as a group after a year of extraordinary gains, with the Roundhill Photonics & Optics ETF falling 6% to $24.89 in morning trading.
The sector-wide decline outpaces moves in the broader market, where the SPDR S&P 500 ETF Trust is down only 0.4% to $774.35, indicating that large caps remain nearly flat while the photonics trade unwinds.
Applied Optoelectronics leads the decline, with shares down 9% to $111.76. The company, which designs and builds optical transceivers in its own plants, has seen its stock rise 221% so far this year.
This steep gain leaves significant room for profit taking, a dynamic that is currently driving the selloff.
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