Arista Networks reported yesterday with pretty good results: YOY Revenue Growth of just over 54% which is only a smidgen off their last ER of 54.7%. Press Release here:
Must have been that darn pesky Guidance…uh… Well…no they actually guided ok. See Here:
So why the hammer? This is the headline:
Just goes to show you that if its not something…it’s something else.
The stock is currently down somewhere around 14-15% putting it in the same general area it closed at way, way - actually not that way, way back at all, on March 2nd.
A SA guy talks about how good ANET’s results were and why Growth investing is so difficult. The title of the article is: The Perils of Growth Investing. Probably not all that familiar with Saul’s massive results over the last 5-6 yrs. Hint: he says it’s a valuation thing. (Cue the sounds of David Gardner softly chucking in the distance).
I actually liked the guys overview but not so much elements of his conclusion: Simply stated, some folks just are not made for the High Hurdles:
So the question for me is pretty simple: Is it time to add ANET?
Back in the day Arista was on the A list for growth stocks - at least for a while; and a few of my subscription services are still singing its praises. So the answer is a rock solid, definitive maybe.
Let’s see what the stock does over the next few days and their could be a spot on the roster for ANET. Sure it sells equipment and stuff and certainly isn’t as dazzle dazzle as our SaaS stalwarts (Who have been getting their brains beat out for quite some time now) But, and this is just a thought, all the high rolling AI folks need equipment to do the AI thing - don’t they. Please note that I know as little about AI as I do about quantum physics - which it to say nothing at all; However, there is this to try and buck out any AI related value ANET might actually have:
I bought some 10 or 20 stocks of ANET at around $120 sometime last year, it went down and up and down…and came back to $120…and so I sold it last year at evens stevens …and then it ran!!!Bottom line, Buy if I sell…and sell if I buy
