This fast-growing tech IPO is getting a lift from increasing demand for high-speed cloud computing. (© Melpomene/stock.adobe.com)

Netflix (NFLX), Fb (Facebook), Apple (AAPL), Amazon.Com (AMZN), Alphabet (GOOGL) and limitless others are placing increasing needs on excessive-speed cloud networking to electricity their Mobile apps, video streaming and Net of factors (IoT) generation. That bodes properly for Acacia, which develops high-pace interconnect modules for cloud infrastructure operators and communique service providers.

Explosive Profits & Sales Growth

Acacia’s Q1 Income Growth of 79% earns it a gap a few of the 4 shares on IBD’s Tech Leaders display screen with the biggest yr-over-year quarterly gains, along with NetEase (NTES) (108%), Paycom Software program (PAYC) (63%) and Facebook (52%).

The Massachusetts-based totally employer also sports activities a three-year annual EPS Boom fee of 237%. On the give up of this month, it is predicted to submit its first Profits file in view that going public in Might also.

Acacia’s ninety nine Composite Score ranks No. 1 in the fiber optics industry institution, and demand for its stocks is contemplated in its 2.1 up/down quantity ratio.
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IPO Base Breakout: Take Two

Acacia went public on May also 13 at 23, then almost doubled in fee within five weeks.

The stock broke out of an IPO base with a 43.20 access on June sixteen, but then sold off and fell lower back underneath the buy point as the Brexit vote rattled the market. Acacia has now set up and is trying out a new capability entry at 45.85.

At the same time as it’s been a fairly risky IPO in a seesaw market, as a main player in a fast-growing industry, Acacia may be one to observe.