Arista Networks Just Delivered Its First $3 Billion Quarter. Here's What It Means for the AI Networking Trade.
AI networking demand keeps accelerating. But how much of it is already in the stock's price?
Overview
Arista Networks (NYSE: ANET) has its first $3 billion quarter. The networking company reported second-quarter revenue of $3.036 billion on Tuesday evening, up 37.7% year over year, while non-GAAP (adjusted) earnings per share climbed about 40% to $1.02.
Investors didn't wait long to reward it. Shares, which closed Tuesday at $190.51, pointed sharply higher in pre-market trading Wednesday as of this writing -- above their previous 52-week high of $194.35. That would put the stock at its highest level in at least a year if the gain holds into the regular session.
Details
Arista sells the high-speed switches and routing platforms that move data inside artificial intelligence (AI) data centers, making it arguably one of the purest ways to invest in AI networking. So a milestone quarter here says something about the whole trade. Here's what it means -- and why I'm not chasing the stock this morning.
Source
Originally published at www.fool.com.