Acacia May Have Just Received A 'Huge Win' From Facebook

The fortunes for Acacia Communications, Inc. ACIA have turned for the better. According to William Blair, checks indicate that Acacia got a big win from Facebook Inc FB for the white box Voyager.

Investors have been waiting for some favorable catalysts to lift the stock after suffering nearly 40 percent between September 30 and November 4, triggering comments that the stock reached the oversold category.

For its part, William Blair expects Facebook to acquire directly from Acacia as part of CAPEX spending, which is estimated at $4.5 billion in the current year. The firm pointed out the social media company's announcement of its desire to enter the optical equipment market through the white-box transponder for data center interconnects (DCI) apps, which is known as Voyager.

In a note, William Blair said, "We believe Facebook’s Voyager will become a disruptive force in the optical networking market and represents a major positive for the component and subsystem vendors specifically Acacia, Broadcom, and Lumentum."

Voyage would combine an open source core IP/MPLS switching, as well as routing function with 200G DWDM optical transport networks of metro/edge. The brokerage expects Voyager to amalgamate Acacia’s AC400 transponder module. Therefore, the firm thinks that it's a big win for the company.