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More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Arista Networks (ANET) closed the latest trading day at $68.67, indicating a +1.48% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 2.51%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 2.71%. Coming into today, shares of the cloud networking company had lost 22.67% in the past month. In that same time, the Computer and Technology sector lost 12.18%, while the S&P 500 lost 8.86%. Be sure to use Zacks.com to monitor all these sto ...

Core Insights - Arista Networks and Cisco Systems are leading players in the global networking industry, with Arista focusing on high-performance Ethernet switches and routers, while Cisco maintains a strong presence in the router and switch market and is expanding into network security [1][2][3] Group 1: Arista Networks - Arista holds a leadership position in 100-gigabit Ethernet switches and is gaining traction in 200-and-400-gig high-performance switching products, driven by solid demand trends among enterprise customers [4] - The company has introduced new cognitive Wi-Fi software and expanded its multi-cloud and cloud-native software product family, enhancing its competitive edge with a unified software stack [5] - Despite increased demand, Arista faces high operating costs, with total operating expenses rising around 20% to $431.3 million in Q4 2024, attributed to headcount increases and product introduction costs [6] Group 2: Cisco Systems - Cisco is expanding its AI capabilities across its portfolio, including the introduction of Webex AI Agent and AI-driven solutions for network management, which are expected to improve customer experience [7][8] - The company has partnered with NVIDIA to develop AI-ready data center networks, launching products like the NVIDIA-based CSCO AI POD, which is gaining traction among AI-based cloud customers [9] - Cisco is facing competitive pressure, leading to discounts and deals in response to competition from Arista and others, which may impact profitability and top-line growth due to declining new orders [10] Group 3: Financial Performance and Estimates - The Zacks Consensus Estimate for Arista's 2025 sales implies an 18% year-over-year growth, while Cisco's sales growth is estimated at 4.9%, with Cisco's EPS expected to decline by 0.3% [11][12] - Over the past year, Arista's stock has gained 12.1%, while Cisco has outperformed with a 19.8% increase [13] - From a valuation perspective, Cisco's shares trade at a forward P/E ratio of 14.76, significantly lower than Arista's 28.5, making Cisco appear more attractive [14] Group 4: Investment Outlook - Arista has shown steady revenue and EPS growth, but Cisco's superior Zacks Rank and better price performance suggest it may be a better investment option at the moment [15][16]

Arista Networks (ANET) shares ended the last trading session 9.4% higher at $76. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.2% loss over the past four weeks.Arista continues to benefit from the expanding cloud networking market, which is driven by the strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance ...

Core Viewpoint - Arista Networks' stock experienced a significant decline due to the Trump administration's announcement of new tariff policies, which raised concerns about potential impacts on global trade and the company's cost structure [1][2][3]. Company Performance - Arista Networks' share price fell by 11.1% in a trading session where the S&P 500 dropped by 4.9% and the Nasdaq Composite decreased by 6% [1]. - The company has been experiencing strong sales growth, particularly in relation to artificial intelligence trends, but there are concerns that business performance may fall below previous expectations due to rising costs from tariffs [3]. Financial Guidance - In its last earnings update, Arista Networks projected sales between $1.93 billion and $1.97 billion for the first quarter, with a targeted non-GAAP gross margin of approximately 63% [4]. - The implementation of new tariffs is set to occur after the close of Q1, suggesting that the company may still meet or exceed its sales targets for that period [4]. Outlook and Risks - The new tariff outlook indicates that Arista Networks' gross margin could decline significantly, and sales for the remainder of the year may fall short of analyst expectations [5].

Arista Networks, Inc. (ANET) has plunged 30.7% over the past three months compared with the industry's decline of 6.4%. It has underperformed its peers, such as Juniper Networks, Inc. (JNPR) and Cisco Systems, Inc. (CSCO) . While Juniper has declined 4.2%, Cisco has gained 4.4% over the same period. Three-Month ANET Stock Price Performance High Concentration Risks, Competitive Pressures Hurt ANET Arista 2.0 Strategy Gains Steam Arista continues benefiting from the expanding cloud networking market, driven b ...

U.S. stock markets closed first-quarter 2025 on a negative note. Wall Street is likely to remain volatile primarily due to uncertainty regarding the Trump administration's tariffs and trade policies, as well as their impact on the U.S. economy, particularly on an already elevated inflation rate. The technology sector, particularly artificial intelligence (AI)-related stocks, suffered the most following the Fed's ambiguity about further lowering interest rates anytime soon and the fear of a near-term recessi ...

Group 1: Stock Splits and Market Performance - Super Micro Computer completed a 10-for-1 stock split in October 2024, while Arista Networks completed a 4-for-1 stock split in December 2024, but neither stock has outperformed the S&P 500 since the splits were announced [1] - Historically, stocks that split have outperformed the benchmark index by an average of 13 percentage points in the year following the announcement [2] Group 2: Super Micro Computer Overview - Super Micro Computer specializes in building data center servers, including liquid-cooled server racks optimized for artificial intelligence (AI), with a market forecast to grow at 30% annually through 2033 [3] - The company has regained compliance with Nasdaq filing requirements after an audit found no evidence of fraud or misconduct related to previous accounting manipulation allegations [6] - For the second quarter of fiscal 2025, revenue rose 55% to $5.6 billion, but gross profit margin contracted 350 basis points to 11.8%, indicating a loss of pricing power amid increasing competition [7] - Wall Street expects earnings to grow at 20% annually through fiscal 2026, making the current valuation of 13 times earnings appear cheap [8] Group 3: Arista Networks Overview - Arista develops networking solutions for cloud and enterprise data centers, with a single operating system for its switches and routers, which reduces network ownership costs and enhances deployment across various cloud types [9] - The company reported fourth-quarter financial results with revenue rising 25% to $1.9 billion and non-GAAP net income increasing 25% to $0.65 per diluted share, with guidance implying 17% revenue growth in 2025 [12] - Arista has a strong presence in high-speed switching categories, holding more than three times the market share of its closest competitor, Cisco Systems, positioning it well to benefit from AI-driven demand for faster data center networks [11] - Management's guidance for 17% revenue growth in 2025 suggests similar earnings growth, and the stock is currently 40% off its high, indicating a potential buying opportunity [14]

Group 1 - AI stocks, particularly Arista Networks (ANET), are facing challenges due to tariff uncertainties and trade tensions, which cloud the overall outlook for the sector [1] - There are contrasting narratives in the market, with speculation surrounding Microsoft's involvement influencing investor sentiment [1] Group 2 - The analyst, Uttam, specializes in technology sector research, focusing on semiconductors, artificial intelligence, and cloud software, among other areas [1] - Uttam has a background in leading teams at major technology firms like Apple and Google, which adds credibility to his insights [1]