Ciena’s Stock Jumps, Reality Follows

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Ciena’s stock leapt like a caffeinated kangaroo Wednesday. By 10:55 a.m. ET, it had hopped 22.7%. The reason? A number. A $0.67-per-share number. Adjusted. Not the real one. But who’s counting?

Wall Street had penciled in $0.53 per share on $1.17 billion in sales. Ciena added $50 million to that sales number and called it a day. The real earnings, the one that matters to accountants, were $0.35 per share. Still, that’s triple what they made last year. Progress, of sorts.

Ciena Q3 Earnings: A Tale of Two Numbers

Adjusted earnings are like a diet-both can be impressive if you ignore the fine print. GAAP earnings? Those are the scales you can’t unsee. But here’s the rub: Ciena’s sales are growing faster than a teenager’s idea of fun. Up 29% year-over-year. Expenses? Also up. By 14%. The math still works. For now.

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Is Ciena Stock a Buy? Let’s Discuss

CEO Gary Smith claims communications networks are “fundamental to AI’s monetization.” A bold statement. Like saying water is fundamental to drowning. Ciena’s equipment keeps data flowing, which is noble work. Unless the data’s yours. Then it’s a tax audit.

Management says Q4 sales will top $1.2 billion. That’s 11% growth. Half of Q3’s pace. And the stock? It’s trading at 127 times trailing earnings. A price that suggests investors believe in magic. Or maybe they’ve seen too many TED Talks.

So it goes. The market loves stories. This one involves lasers, fiber, and a sprinkle of AI optimism. But remember: All growth stories end. Some with a whimper. Others with a lawsuit. Or a regulatory fine. Or both.

Portfolio managers: Buy the dip? Sell the hype? The answer, like all answers, is conditional. But the universe? It keeps expanding. So it goes. 🚀

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2025-09-04 19:34