Short interest for Arista Networks gives investors a sense of the degree to which investors are betting on the decline of Arista Networks's stock. Short interest data is updated every two weeks.

Arista Networks Stock (NYSE:ANET), Short Interest Report

Arista Networks

Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.

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Stocks Pause On Dismal Consumer Confidence; Yields, Dollar Rise As Inflation Expectations Kick Higher, Bitcoin Sinks: What&#39;s Driving Markets Friday? (CORRECTED)

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Wednesday witnessed a tempering of the bullish sentiment that had buoyed Wall Street in recent sessions, with major indices showing slight declines around midday trading in New York.

Stocks Falter As Fed Signals Need For Higher-For-Longer Rates; Uber Crashes, Energy Sector Loses Ground: What&#39;s Driving Wednesday&#39;s Market?

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Arista Networks reported quarterly earnings of $1.99 per share which beat the analyst consensus estimate of $1.74 by 14.37%. Quarterly sales came in at $1.571 billion which beat the analyst consensus estimate and represents a 16.28% increase over sales from the same period last year.

Arista Networks Stock Climbs After Strong Q1 Earnings, Upbeat Guidance

Arista Networks Inc

Editor&#8217;s note: This story has been updated to correct an error in the price action of Charter Communications stock. 
A worse-than-expected University of Michigan May consumer report halted stock gains on Friday, sparking worries about a potential decline in consumer health amid<a href="https://www.benzinga.com/markets/equities/24/05/38762249/consumer-sentiment-falls-in-may-inflation-expectations-strongly-exceed-feds-2-goal-they-now-perc"> perceived rising price pressures.</a>
The report disclosed that both near-term and long-term inflation expectations have surged beyond projections this month, causing the broader consumer gauge to hit its lowest levels in six months.
&#8220;If spending slows down and inflation increases, we'll get the opposite of the Goldilocks scenario that many were hoping for, and the Fed will be in an especially difficult position of choosing between accommodating a slowing economy and fighting increasing inflation expectations,&#8221; said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. 
Echoing this view, Jeffrey Roach, chief economist for LPL Financial, sees rising risks of stagflation, a concern that could unsettle markets. 
At 12:05 p.m. trading in New York, the S&amp;P 500 was 0.1% lower, but it was firmly up by 1.6% for the week, poised to secure a third consecutive week of gains after three of losses.
The Dow Jones Industrial Average was a tad higher, battling to secure the eight straight session of gains, the longest positive streak since December 2023. Tech stocks were flat. Small caps were the underperformers, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) down 0.9%. 
The rising inflation perceptions in the consumer survey rescued the dollar, which eyes a positive weekly close, after two negative ones. 
Treasury yields also inched higher by about 4 basis points across all maturities. The 10-year benchmark hit 4.5%.
Gold surged to $2,385/oz, with the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) up 0.8%. 
The dismal consumer sentiment data sharply weighed on Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) with the largest cryptocurrency dropping over 4% from $63,000 to below $60,500 following the report. 
<h3 class="wp-block-heading">Chart of The Day: Michigan Consumer Sentiment Data Dings Bitcoin </h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/10120647/image-59-1024x495.png" alt="" class="wp-image-332979" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/10120647/image-59-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/10120647/image-59-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/10120647/image-59-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/10120647/image-59-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/10120647/image-59.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,411.32</td>
<td>0.1 %</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,108.22</td>
<td>0.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,209.09</td>
<td>-0.1 %</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>204.04</td>
<td>-0.9%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:05 p.m.</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was unchanged at $520.20, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.2% to $394.65 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was up 0.1% to $441.38, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 0.5%. The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) was the major laggard, down 0.6%.
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Novavax Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) surged by an astonishing 122%, after the company announced a Covid-19 vaccine licensing deal with Sanofi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNY#NASDAQ">SNY</a>). The pharmaceutical company reported a lower than expected loss last quarter, but missed revenue estimates. </li>
<li>MacroGenics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGNX#NASDAQ">MGNX</a>) tumbled by 77% following an interim update on a mid-stage study of a cancer drug candidate, which reported the unfortunate deaths of several study participants. Furthermore, the results for the quarter fell short of expectations.</li>
<li>Charter Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) rose 4.6% after the company started a tender offer to buy back senior secured notes due 2025 for up to $1.7 billion in cash.</li>
<li>Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) dropped by 4% after the company announced that the FDA won&#8217;t finish its review of MRNA&#8217;s respiratory syncytial virus (RSV) vaccine by the scheduled action date of May 12 due to administrative constraints. The FDA has communicated that it anticipates completing the review by the end of May.</li>
<li>Companies reacting to earnings were Gen Digital Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEN#NASDAQ">GEN</a>) up 15%, Mettler-Toledo International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTD#NYSE">MTD</a>) up 14%, Akamai Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) down 10%, Ubiquiti Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UI#NYSE">UI</a>) up 8%, DigitalOcean Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOCN#NYSE">DOCN</a>) up 6.6%, Construction Partners Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROAD#NASDAQ">ROAD</a>) up 2.6%, Sylvamo Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVM#NYSE">SLVM</a>) down 5%, Costamare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMRE#NYSE">CMRE</a>) up 1.3%, Marathon Digital Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) down 8%, Insulet Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PODD#NASDAQ">PODD</a>) down 4%, H&amp;R Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>) up 9.7%, and Genpact Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/G#NYSE">G</a>) up 5.7%. </li>
</ul>
Read now: <a href="https://www.benzinga.com/markets/equities/24/05/38764576/tesla-german-gigafactory-faces-climate-protestors-friday-why-are-they-not-jailed-musk-asks">Tesla German Gigafactory Faces Climate Protestors Friday: &#8216;Why Are They Not Jailed,&#8217; Musk Asks</a>
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Stocks Pause On Dismal Consumer Confidence; Yields, Dollar Rise As Inflation Expectations Kick Higher, Bitcoin Sinks: What's Driving Markets Friday? (CORRECTED)

Investors with a lot of money to spend have taken a bullish stance on Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ANET, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 25 uncommon options trades for Arista Networks.
This isn't normal.
The overall sentiment of these big-money traders is split between 40% bullish and 36%, bearish.
Out of all of the special options we uncovered, 9 are puts, for a total amount of $307,840, and 16 are calls, for a total amount of $841,909.
<h3>What's The Price Target?</h3>
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $200.0 to $430.0 for Arista Networks over the last 3 months. 
<h3>Insights into Volume &amp; Open Interest</h3>
In today's trading context, the average open interest for options of Arista Networks stands at 321.82, with a total volume reaching 1,800.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Arista Networks, situated within the strike price corridor from $200.0 to $430.0, throughout the last 30 days.
<h3>Arista Networks 30-Day Option Volume &amp; Interest Snapshot</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1715355312_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>ANET</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$35.1</td>
<td>$32.6</td>
<td>$34.5</td>
<td>$280.00</td>
<td>$172.5K</td>
<td>1.1K</td>
<td style="text-align: right;">54</td>
</tr>
<tr>
<td>ANET</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>05/10/24</td>
<td>$17.9</td>
<td>$17.6</td>
<td>$17.9</td>
<td>$290.00</td>
<td>$125.3K</td>
<td>483</td>
<td style="text-align: right;">54</td>
</tr>
<tr>
<td>ANET</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$22.8</td>
<td>$22.6</td>
<td>$22.6</td>
<td>$430.00</td>
<td>$70.0K</td>
<td>29</td>
<td style="text-align: right;">54</td>
</tr>
<tr>
<td>ANET</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$56.3</td>
<td>$54.7</td>
<td>$56.3</td>
<td>$250.00</td>
<td>$56.3K</td>
<td>206</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>ANET</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$59.8</td>
<td>$58.0</td>
<td>$58.0</td>
<td>$250.00</td>
<td>$46.4K</td>
<td>847</td>
<td style="text-align: right;">3</td>
</tr>
</tbody>
</table>

<h3>About Arista Networks</h3>
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.
In light of the recent options history for Arista Networks, it's now appropriate to focus on the company itself. We aim to explore its current performance.
<h3>Arista Networks's Current Market Status</h3>
<ul>
<li>With a trading volume of 1,977,841, the price of ANET is up by 4.88%, reaching $310.51.</li>
<li>Current RSI values indicate that the stock is may be approaching overbought.</li>
<li>Next earnings report is scheduled for 80 days from now.</li>
</ul>
<h3>What Analysts Are Saying About Arista Networks</h3>
In the last month, 5 experts released ratings on this stock with an average target price of $293.2.
<ul>
<li>An analyst from Keybanc has decided to maintain their Overweight rating on Arista Networks, which currently sits at a price target of $349. </li>
<li>An analyst from UBS persists with their Neutral rating on Arista Networks, maintaining a target price of $285. </li>
<li>Consistent in their evaluation, an analyst from Piper Sandler keeps a Neutral rating on Arista Networks with a target price of $302. </li>
<li>An analyst from Needham downgraded its action to Buy with a price target of $320. </li>
<li>An analyst from Rosenblatt has revised its rating downward to Sell, adjusting the price target to $210. </li>
</ul>
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Arista Networks with <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> for real-time alerts.

Options

Markets

Arista Networks Options Trading: A Deep Dive into Market Sentiment

Barclays analyst Tim Long maintains Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) with a Overweight and raises the price target from $311 to $320.

Price Target

Barclays Maintains Overweight on Arista Networks, Raises Price Target to $320

Keybanc analyst Steve Enders maintains Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) with a Overweight and raises the price target from $306 to $349.

Keybanc Maintains Overweight on Arista Networks, Raises Price Target to $349

Wednesday witnessed a tempering of the bullish sentiment that had buoyed Wall Street in recent sessions, with major indices showing slight declines around <a href="https://www.benzinga.com/markets">midday trading in New York.</a>
Hawkish remarks from Minneapolis Fed President Neel Kashkari and Boston Fed President Susan Collins sparked concerns among investors about the potential delay in rate cuts, as the likelihood of enduring higher interest rates gained traction.
Kashkari asserted that the Fed would likely need to maintain borrowing costs at current levels for an extended period, potentially throughout the year, and did not rule out rate hikes if inflation remained stubbornly high at 3%.
Collins echoed similar sentiments, suggesting that a slowdown in economic growth would be necessary to bring inflation closer to the Fed&#8217;s 2% target, cautioning against premature rate cuts.
The S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), edged down by 0.2%, striving for a fifth consecutive day of gains, which would mark the longest winning streak since late January.
The Nasdaq 100 also slipped by 0.2%, while blue-chip stocks in the Dow Jones Industrial Average marginally managed to avoid losses. However, small-cap stocks were the laggards of the day, with the Russell 2000 Index declining by 0.9%.
In the commodities market, the Energy Information Administration&#8217;s report of a decline in crude oil inventories last week led to a modest 0.6% increase in West Texas Intermediate prices. Gold prices remained steady, while silver experienced a modest uptick of 0.6%.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded flat at $62,300.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance Of Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>Chg</td>
<td>%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,938.23</td>
<td>+53.97</td>
<td>0.1%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,062.51</td>
<td>-28.94</td>
<td>-0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,177.51</td>
<td>-10.19</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,056.16</td>
<td>-1.81</td>
<td>-0.9%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:54 EDT</figcaption></figure>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Uber Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NASDAQ">UBER</a>) fell over 9% after the company missed earnings expectation, ad reported a loss in Q1. </li>
<li>Other stocks reacting to earnings were Shopify Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>), down 19%, Tripadvisor.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRIP#NASDAQ">TRIP</a>), down 29%, Kyndril Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KD#NYSE">KD</a>) up 23%, Emerson Electric Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMR#NYSE">EMR</a>) up 3.5%, Vista Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>), Broadbidge Financial Solutiom (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BR#NYSE">BR</a>) down 6%, TPG Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TPG#NASDAQ">TPG</a>) down 3% Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>), up 6%, Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), up 3% Reddit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDT#NYSE">RDT</a>) up 2.3%, Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) down over 11%, Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>) down over 6%.</li>
<li>Those reporting after the close include Airbnb, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>), Beyond Meat, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BYND#NASDAQ">BYND</a>), Bumble Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BMBL#NASDAQ">BMBL</a>), Cheesecake Factory Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAKE#NASDAQ">CAKE</a>), Exact Sciences Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXAS#NASDAQ">EXAS</a>), HubSpot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBS#NYSE">HUBS</a>), News Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWSA#NASDAQ">NWSA</a>), Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>), The Trade Desk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>) and SolarEdge Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>).</li>
</ul>
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Image generated using artificial intelligence via Midjourney.

Stocks Falter As Fed Signals Need For Higher-For-Longer Rates; Uber Crashes, Energy Sector Loses Ground: What's Driving Wednesday's Market?

Piper Sandler analyst James Fish maintains Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) with a Neutral and raises the price target from $268 to $302.

Piper Sandler Maintains Neutral on Arista Networks, Raises Price Target to $302

Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) shares are trading higher Wednesday after the company posted strong first-quarter <a href="https://www.benzinga.com/news/earnings/24/05/38696336/wall-street-poised-for-muted-open-on-mixed-earnings-with-more-fed-speeches-in-store-analyst-sees-s-">earnings and upbeat guidance.</a>
The Details:
Arista Networks reported <a href="https://www.benzinga.com/pressreleases/24/05/b38681329/arista-networks-inc-reports-first-quarter-2024-financial-results">quarterly earnings</a> of $1.99 per share which beat the analyst consensus estimate of $1.74 by 14.37%.
Quarterly sales came in at $1.571 billion which beat the analyst consensus estimate and represents a 16.28% increase over sales from the same period last year.
The company's board of directors authorized an additional $1.2 billion stock repurchase program.&nbsp;
Arista sees second-quarter revenue in a range of $1.62 billion to $1.65 billion, versus the $1.62 billion estimate.&nbsp;
&#8220;Arista is off to a strong start to 2024 with solid first quarter results,&#8221; said Jayshree Ullal, CEO of Arista Networks. &#8220;As we get ready to celebrate the 10th anniversary of our IPO in June, I am pleased with our progress in the Arista 2.0 journey as seen in breakthrough innovations, customer traction and building our next generation leaders.&#8221;&nbsp;
UBS analyst David Vogt maintained Arista Networks with a Neutral rating and raised the price target from $275 to $285 following the print, and Needham reiterated its Buy rating and $320 price target.
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<h2 class="wp-block-heading">ANET Stock Prediction 2024: </h2>
Arista Networks&#8217; revenue growth in fiscal year 2023 was 33.71%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company&#8217;s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.2%, growing 2.1% from last year. The unemployment rate was most recently reported as 3.9%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Arista Networks stock. For real time economic data and breaking market updates, <a href="https://pro.benzinga.com/">check out Benzinga Pro. Try it for free.</a>
How does this stack up against Arista Networks's peers?
Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Arista Networks operates in the Information Technology sector. The stock has experienced average annual growth of 53.04% compared to the -9.54% average of its peer companies. This is above the broader sector movement of Arista Networks.
ANET Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Arista Networks shares are up 6.81% at $292.64 at the time of publication Wednesday.
Image: Courtesy of Arista Networks, Inc.&nbsp;

Wells Fargo analyst Aaron Rakers maintains Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) with a Overweight and raises the price target from $310 to $340.

Wells Fargo Maintains Overweight on Arista Networks, Raises Price Target to $340

UBS analyst David Vogt maintains Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) with a Neutral and raises the price target from $275 to $285.

UBS Maintains Neutral on Arista Networks, Raises Price Target to $285

Needham analyst Alex Henderson reiterates Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) with a Buy and maintains $320 price target.

Reiteration

Needham Reiterates Buy on Arista Networks, Maintains $320 Price Target

U.S. stocks are on track for a mixed start on Wednesday as the <a href="https://www.benzinga.com/news/earnings/24/05/38683629/twilio-q1-earnings-revenue-beat-eps-beat-buyback-update-and-more">market digests mixed earnings reports</a> and looks ahead to more speeches by Federal Reserve officials. Given the paucity of any market-moving economic data, the spotlight will likely be on central bank officials&#8217;s statements about rates and inflation.
The still-contained bond yields suggest traders are still harboring hopes of rate cuts this year. The importance of each incoming data, therefore, can&#8217;t be emphasized enough. &#8220;Wall Street will continue to root for bad economic news since it wants to guilt the Fed to begin cutting key interest rates sooner rather than later,&#8221; said fund manager Louis Navellier.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.03%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.01%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.07%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.46%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Wednesday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) edged up 0.02% to $517.24,&nbsp;while the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) slipped 0.02% to $440.21, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session:
Some disappointing earnings, particularly from the tech space, were used by traders as a reason for profit-taking on Tuesday. To make matters worse, Minneapolis Fed President Neel Kashkari, while speaking at a Milken Institute conference., said the the Fed may have to stay higher for longer. He also opined that inflation may not be too high to contain inflationary pressure.
The major averages opened on a mixed note and experienced some volatility in the morning session. Although the indices moved uniformly higher and hovered above the unchanged line during the mid-session, they pulled back in the afternoon. While the Nasdaq Composite settled the day modestly lower, the S&amp;P 500 Index and the Dow Industrials experienced modest gains.
Most sectors advanced, although consumer discretionary, IT, and energy stocks came under selling pressure.
In the process, the Dow Industrials extended its winning streak to five sessions, the S&amp;P 500 was higher for a fourth straight session.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td> Index</td>
<td> Performance (+/-)</td>
<td> Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-0.10%</td>
<td>16,332.56</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.13%</td>
<td>5,187.70</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.08%</td>
<td>38,884.26</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.19%</td>
<td>2,064.65</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Despite the volatility seen in the market, the broader trajectory in the near term could be higher, said a technical analyst. Fund Strat Global Head of Technical Strategy Mark Newton said in a note on Monday equities remain in a new short-term bullish uptrend as part of intermediate-term uptrends which never wavered during the recent three-week decline.  
&#8220;While more evidence of falling Yields and the US Dollar is likely beginning in the days/weeks ahead, it's likely that the recent uptick in Healthcare, Financials and Industrials are constructive factors for this market technically and should help it broaden out,&#8221; he said. 
The analyst also attaches significance to the bounce seen in SMID-cap stocks over the past week. &#8220;This recovery is also important despite it being in its infancy,&#8221; he said. Newton said he expects the S&amp;P 500 Index to begin its trek back to late March highs at 5264.85 and should exceed this en route to 5400.
Upcoming Economic Data:
<ul>
<li>The Commerce Department is due to release its wholesale inventories report at 10 a.m. EDT. Economists, on average, expect a 0.4% month-over-month decline in wholesale inventories in March, reversing most of the 0.5% gain in February.</li>
<li>The Energy Information Administration will release its customary weekly petroleum status report at 10:30 a.m. EDT.</li>
<li>Fed Vice Chair Philip Jefferson is due to speak at 11 a.m. EDT, followed by Boston Fed President Susan Collins at 11:45 a.m. EDT and Fed Governor Lisa Cook at 1:30 p.m. EDT.</li>
<li>The Treasury will auction 10-year notes at 1 p.m. EDT.</li>
</ul>
See Also: <a href="https://www.benzinga.com/money/best-futures-brokers">Best Futures Brokers </a>
Stocks In Focus:
<ul>
<li>Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) climbed over 7.50% <a href="https://www.benzinga.com/premarket">in premarket trading </a>following its earnings announcement.</li>
<li>Other stocks moving on earnings are Coupang, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPNG#NYSE">CPNG</a>) (down over 6%), Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) (down about 3.50%), GoPro, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GPRO#NASDAQ">GPRO</a>) (up about 3.80%), Luminar Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAZR#NASDAQ">LAZR</a>), Match Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTCH#NASDAQ">MTCH</a>) (up over 16%), Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), Reddit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDT#NYSE">RDT</a>) (up nearly 15%), Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) (down over 4%), Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>) (down over 6%), RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) (up nearly 14%), Louisiana-Pacific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPX#NYSE">LPX</a>) (up about 15%), DoubleVerify Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DV#NYSE">DV</a>) (down about 39%), ZoomInfo Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZI#NASDAQ">ZI</a>) (down over 22.50%) and Lyft, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>) (up over 5%).</li>
<li>Anheuser-Busch InBev SA/NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>), Choice Hotels International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHH#NYSE">CHH</a>), The New York Times Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYT#NYSE">NYT</a>), Taboola.com Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TBLA#NASDAQ">TBLA</a>), Sunoco LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SUN#NYSE">SUN</a>), Teva Pharmaceutical Industries Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEVA#NYSE">TEVA</a>), Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) and EchoStar Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATS#NASDAQ">SATS</a>) are among the<a href="https://www.benzinga.com/calendars/earnings"> notable companies reporting ahead of the market open.</a></li>
<li>Those reporting after the close include Airbnb, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>), Beyond Meat, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BYND#NASDAQ">BYND</a>), Bumble Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BMBL#NASDAQ">BMBL</a>), Cheesecake Factory Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAKE#NASDAQ">CAKE</a>), Exact Sciences Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXAS#NASDAQ">EXAS</a>), HubSpot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBS#NYSE">HUBS</a>), News Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWSA#NASDAQ">NWSA</a>), Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>), The Trade Desk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>) and SolarEdge Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>).</li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures were seen extending their declines and were down about a percent and gold futures traded flattish with a slight negative bias. The 10-year bond yield rose 18 basis points but held below the 4.5% mark. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell over 2% to under $62.5K.
Most Asian markets slipped on Wednesday, tracking the lackluster performances of Wall Street stocks overnight, while the European markets firmed up in early trading.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/05/38636014/will-earnings-cheer-continue-this-week-all-eyes-on-disney-palantir-robinhood-while-reddit-gears-up-">Will Earnings Cheer Continue This Week? All Eyes On Disney, Palantir, Robinhood While Reddit Gears Up For Debut Quarterly Report</a>

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Wall Street Poised For Muted Open On Mixed Earnings, With More Fed Speeches In Store: Analyst Sees S&P 500 Crossing Late-March High

WIIM

Arista Networks shares are trading higher following strong Q1 earnings and upbeat guidance.

Buybacks

Arista Networks Board of Directors Authorizes Additional $1.2B Stock Repurchase Program

Guidance

Arista Networks Sees Q2 Revenue $1.62B-$1.65B vs $1.62B Est.

Arista Networks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) reported quarterly earnings of $1.99 per share which beat the analyst consensus estimate of $1.74 by 14.37 percent. The company reported quarterly sales of $1.571 billion which beat the analyst consensus estimate of $1.549 billion by 1.39 percent. This is a 16.28 percent increase over sales of $1.351 billion the same period last year.

Arista Networks Q1 2024 Adj EPS $1.99 Beats $1.74 Estimate, Sales $1.571B Beat $1.549B Estimate

Wall Street experienced a quiet session during morning trading on Tuesday, influenced by a lack of significant economic data and minimal updates on earnings from <a href="https://www.benzinga.com/money/best-large-cap-stocks">major large-cap companies.</a>
Traders largely disregarded the latest hawkish comments from Minneapolis Fed President Neel Kashkari, who noted progress on inflation seen in the latter half of 2023 had stalled and mentioned the Federal Reserve might raise rates if inflation becomes persistent. 
Kashkari also revealed he initially predicted two rate cuts for the year, but now anticipated possibly maintaining two, or reducing to one or none by the June Summary of Economic Projections.
The S&amp;P 500 saw a modest increase of 0.2% around midday in New York, with similar gains in the tech-heavy Nasdaq 100 and the Dow Jones, all of which are poised for their fourth consecutive session of gains. The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), representing small caps, performed notably well, rising 0.8%.
Treasury yields declined slightly by about 6 basis points across various maturities from 5 to 30 years, with the 10-year benchmark decreasing to 4.4%, marking a fifth consecutive day of declines. This led to a continued rally in bonds, exemplified by a 1.1% increase in the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>).
In corporate news, chipmaker Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) saw its shares drop over 13% following weaker-than-expected guidance. Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) also fell sharply by over 10%, setting it on course for its worst performance day since November 2022.
In the cryptocurrency and precious metals markets, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) remained stable at $63,800, while both gold and silver declined by 0.5%
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,072.99</td>
<td>0.7%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,193.42</td>
<td>0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,137.08</td>
<td>0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,914.33</td>
<td>0.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.3% to $518.80, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.6% to $389.01 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.3% to $441.54, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 1.1%, followed by the Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>), 1%. The Consumer Discretionary Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) was the major laggard, down 0.3%.
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) climbed over 5% amid rumors of a potential partnership with Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).</li>
<li>Simon Property Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPG#NYSE">SPG</a>) rose over 3% after the company reported upbeat results during the previous quarter. On the other hand, Lucid Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) fell over 14% after posting mixed quarterly results</li>
<li>Other stocks reacting to earnings were GlobalFoundries Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>) up over 8%, Vertex Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRTX#NASDAQ">VRTX</a>), Datadog Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDOG#NASDAQ">DDOG</a>) down over 10%, Duke Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>) up 1%, Transdigm Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>) down 2%, DBA Sempra (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SRE#NYSE">SRE</a>) down 0.4%, Kenvue Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KVUE#NYSE">KVUE</a>) up 5%, Rockwell Automation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROK#NYSE">ROK</a>) up 1%, Microchip Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) down 1%, Williams Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>) up 0.8%, Fidelity National Information Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FIS#NYSE">FIS</a>) and Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) down 4%.</li>
<li>Companies reporting after the close include Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>), Coupang, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPNG#NYSE">CPNG</a>), Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), GoPro, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GPRO#NASDAQ">GPRO</a>), iRobot Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRBT#NASDAQ">IRBT</a>), Luminar Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAZR#NASDAQ">LAZR</a>), Match Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTCH#NASDAQ">MTCH</a>), Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), Reddit, Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>), Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>), RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) and Lyft, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>).</li>
</ul>
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US Stocks Eye Fourth Positive Session Despite Hawkish Fed Remarks; Disney, Palantir Tumble; Treasury Yields Fall: What's Driving Markets Tuesday?

Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) is expected to release earnings results for its first quarter, after the <a href="https://www.benzinga.com/quote/ANET">closing bell on May 7.</a>
Analysts expect the Santa Clara, California-based company to report quarterly earnings at $1.75 per share, up from $1.43 per share in the year-ago quarter. Arista Networks is projected to report quarterly revenue of $1.55 billion, compared to $1.31 billion in the year-earlier quarter, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a>
On Feb. 12, Arista said fourth-quarter revenue increased 20.8% year-over-year to $1.54 billion, which beat the consensus estimate of $1.53 billion. The company reported quarterly earnings of $2.08 per share, which beat analyst estimates of $1.70 per share.
Arista shares rose 1.6% to close at $278.82 on Monday.
Benzinga readers can access the latest analyst ratings on the A<a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">nalyst Stock Ratings </a>. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate <a href="https://www.benzinga.com/quote/ANET/analyst-ratings">analysts have rated the company</a> in the recent period.
<ul>
<li>Jefferies analyst George Notter upgraded the stock from Hold to Buy and raised the price target from $240 to $320 on May 3. This analyst has an accuracy rate of 73%.</li>
<li>JP Morgan analyst Samik Chatterjee maintained an Overweight rating and increased the price target from $297 to $315 on April 11. This analyst has an accuracy rate of 69%.</li>
<li>Goldman Sachs analyst Michael Ng maintained a Buy rating and boosted the price target from $313 to $356 on March 22. This analyst has an accuracy rate of 64%.</li>
<li>Barclays analyst Tim Long maintained an Overweight rating and increased the price target from $272 to $311 on Feb. 13. This analyst has an accuracy rate of 74%.</li>
<li>Wells Fargo analyst Aaron Rakers maintained an Overweight rating and increased the price target from $225 to $310 on Feb. 7. This analyst has an accuracy rate of 84%.</li>
</ul>
Read This Next: <a href="https://www.benzinga.com/news/24/05/38637849/top-2-risk-off-stocks-that-may-plunge-in-q2">Top 2 Risk Off Stocks That May Plunge In Q2</a>

Arista Networks Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

The recent market recovery shows signs of a slight falter. Index futures indicate a mixed open on Tuesday. Negative reactions to earnings from AI-linked company&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38653781/palantir-q1-earnings-revenue-beat-and-raise-us-commercial-growth-continued-gaap-profitability-and-m" rel="noreferrer noopener">Palantir Technologies</a>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) could weigh on the tech sector. Surprisingly,&nbsp;Walt Disney Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) shares fell sharply pre-market despite reporting a profit and its direct-to-consumer business turning a profit for the first time.
Traders may also focus on a speech by a hawkish Federal Reserve official scheduled for midday. Bond yields and the March consumer credit report could also be in the spotlight.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.14%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.05%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.13%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.10%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Tuesday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) climbed 0.06% to $516.86,&nbsp;and the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) slipped 0.12% to $439.70, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session: 
The positive catalysts driving the market last week continued on Monday, pushing stocks higher. Fed Chair&nbsp;Jerome Powell&#8216;s dismissal of rate hikes, the &#8220;Goldilocks&#8221; job numbers, and positive earnings reports further lowered bond yields, leading to improved risk appetite.
The major averages opened higher and traded sideways, with buying accelerating in late trading. The Dow Industrials rose for a fourth session, while the Nasdaq Composite and S&amp;P 500 advanced for three straight days, all three reaching one-month highs. Information technology, consumer discretionary, and communication services stocks led the gains, with all sectors except real estate advancing.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td> Index</td>
<td> Performance (+/-)</td>
<td> Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+1.19%</td>
<td>16,349.25</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+1.03%</td>
<td>5,180.74</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.46%</td>
<td>38,852.27</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+1.23%</td>
<td>2,060.67</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Fund manager Louis Navellier said in a note that the &#8220;bull market is back.&#8221; Outlining the rationale behind his conviction, he said:
<ul>
<li>rebound off the April correction should give investors more confidence in buying dips going forward.</li>
<li>lower interest rates are a bit more incentive to deploy funds out of money market accounts.</li>
<li>AI theme remains intact</li>
<li>an election year which should be heating up soon.</li>
</ul>
&#8220;The Magnificent 7&#8221; is a few cents from hitting a new high for the year, he noted.
Adam Turnquist, Chief Technical Strategist for LPL Financial, said technically, the S&amp;P 500 has bounced off oversold levels and rallied back to resistance at the 50-day moving average. The March high of 5,254 is the next resistance hurdle to clear, the analyst said. 
The technical strategist noted that the market breadth remained robust, with nearly three-quarters of S&amp;P 500 stocks remaining above their 200-dma. Cyclical sectors exhibited the broadest participation, he added.
&#8220;Momentum is also improving as the Percent Price Oscillator — a momentum indicator based on the relationship between two moving averages — recently flipped back into a buy position,&#8221; Turnquist said.
Upcoming Economic Data:
<ul>
<li>Minneapolis Fed President Neel Kashkari is due to speak at 11:30 a.m. EDT.</li>
<li>The Energy Information Administration will release its short-term energy outlook report at noon EDT.</li>
<li>The Treasury will auction three-year notes at 1 p.m. EDT.</li>
<li>The Fed will release its consumer credit report for March at 3 p.m. EDT. The outstanding consumer credit is expected to rise from $14.1 billion in February to $15 billion in March.</li>
</ul>
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Stocks In Focus:
<ul>
<li> Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) fell over 8.50% <a href="https://www.benzinga.com/premarket">in premarket trading </a>following the company&#8217;s earnings announcement.</li>
<li>Other stocks moving on earnings are Lumentum Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LITE#NASDAQ">LITE</a>) (up over 4%), Palantir (down over 9.70%), Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) (down about 4%), The Williams Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>), Vornado Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNO#NYSE">VNO</a>) (down over 3%) and Coherent Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NYSE">COHR</a>) (up over 7.50%).</li>
<li>Crocs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>), Datadog, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDOG#NASDAQ">DDOG</a>), Duke Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>), Embraer S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERJ#NYSE">ERJ</a>), Expeditors International of Washington, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPD#NYSE">EXPD</a>), EVgo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVGO#NASDAQ">EVGO</a>), Rockwell Automation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROK#NYSE">ROK</a>), UBS Group AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBS#NYSE">UBS</a>), Disney and WK Kellogg Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KLG#NYSE">KLG</a>) are among the<a href="https://www.benzinga.com/calendars/earnings"> notable companies reporting ahead of the market open.</a></li>
<li>Those reporting after the close include Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>), Coupang, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPNG#NYSE">CPNG</a>), Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), GoPro, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GPRO#NASDAQ">GPRO</a>), iRobot Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRBT#NASDAQ">IRBT</a>), Luminar Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAZR#NASDAQ">LAZR</a>), Match Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTCH#NASDAQ">MTCH</a>), Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), Reddit, Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), Twilio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWLO#NYSE">TWLO</a>), Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>), RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>) and Lyft, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>).</li>
<li>Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) climbed over 5% amid rumors of a <a href="https://www.benzinga.com/markets/equities/24/05/38660790/is-apple-back-in-the-ev-game-tech-giant-reportedly-eyes-rivian-partnership">potential partnership with</a> Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>). Apple was up a little less than a percent ahead of its &#8220;Let Loose&#8221; hardware launch event.</li>
</ul>
Commodities, Bonds, and Global Equity Markets:
After Monday&#8217;s recovery, crude futures were headed lower and traded just above the $78-a-barrel mark, while gold futures fell. The 10-year bond yield fell further and held under 4.5%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased below $64,000 at the last check.
Markets in Asia ended on a mixed note, with those reopening after Monday&#8217;s public holiday playing catchup and rising sharply, while the Hong Kong, Chinese, Indian, Indonesian, and New Zealand markets retreated. European stocks have started on a firm note.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/05/38636014/will-earnings-cheer-continue-this-week-all-eyes-on-disney-palantir-robinhood-while-reddit-gears-up-">Will Earnings Cheer Continue This Week? All Eyes On Disney, Palantir, Robinhood While Reddit Gears Up For Debut Quarterly Report</a>
illustration created using artificial intelligence via MidJourney.

COHR

CROX

Embraer-Empresa Brasileira De Aeronautica

EVGO

EXPD

LITE

Wall Street Stutters After Disney, Palantir Earnings Frustrate: Apple Event, Hawkish Fed Speech In Focus While Analyst Insists 'Bull Market Is Back'

Two technology sector AI plays — Arista Networks Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) and Globalfoundries Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>) — will be reporting their first-quarter earnings on Tuesday. Globalfoundries will report before the market opens, Arista will report <a href="https://www.benzinga.com/calendars/earnings?tickers=ANET">after market hours</a>.
<h1 class="wp-block-heading">Arista Networks: Powering Ahead With AI</h1>
Arista Networks is known for its high-performance, software-driven networking solutions for large data centers and cloud computing environments. 
In late April, the company introduced a new network identity service for enterprise security and IT operations. The service is powered by AI and delivered via the cloud.
Wall Street expects Arista Networks to report $1.75 in EPS and $1.552 billion in revenue. 
<h1 class="wp-block-heading">Globalfoundries: $1.5B Funding to Support Further Growth</h1>
Globalfoundries is known for manufacturing semiconductor chips for a variety of industries, including automotive, communications and computing. 
The company has secured $1.5 billion in funding for a new facility in Malta, New York. The funding has been secured to expand its manufacturing capacity for chips used in automotive, IoT, aerospace, defense and other markets. The funding is part of the U.S. CHIPS and Science Act.
Wall Street expects GlobalFoundries to report 23 cents in EPS and $1.523 billion in revenue. 
With the rise in AI use cases and applications promising growth for all stocks in the field, let&#8217;s look at which of these two stocks is currently the better buy, according to analysts.
<h1 class="wp-block-heading">With Optimism Already Priced Into Arista Stock, Globalfoundries Offers The Better P/E</h1>
Arista Networks&#8217; stock is up over 110% over the past year, about 18.4% YTD. The stock has had a good run, as evidenced by its premium valuation at 42.22 trailing P/E.
Globalfoundries&#8217; stock on the other hand, has declined 16% over the past year and is down 17.71% YTD. Consequently, it is one of the two <a href="http://Semiconductor stocks have been in the spotlight lately, with ON Semiconductor ON and Globalfoundries Inc GFS trading near their 52-week lows.">semiconductor MANGO stocks</a> that recently have been trading near their 52-week lows.
MANGO is a novel grouping of seven companies in the semiconductor sector. The term was introduced by BofA Securities analyst&nbsp;Vivek&nbsp;Arya in a bid to mirror the success of FAANG stocks. Other members of the group include: Marvell Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>),&nbsp;Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>),&nbsp;Broadcom Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>),&nbsp;Analog Devices&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>), Nvidia&nbsp;Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and ON Semiconductor (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>).
Notably, Globalfoundries is the most <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38169084/what-is-the-most-undervalued-mango-semiconductor-stock-right-now">undervalued MANGO stock</a> right now, a comparison of the P/E FWD and EV/Sales multiples, revealed. 
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="450" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/06142249/pe-chart-1.png" alt="" class="wp-image-324612" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/06142249/pe-chart-1.png 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/06142249/pe-chart-1-300x208.png 300w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Data Source: Yahoo Finance, Compiled by Benzinga
Consequently, Globalfoundries sports a more favorable forward P/E of 23.66 compared to Arista Networks&#8217; 32.28.
Let&#8217;s now take a dig at the upside potential.
Related: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38169084/what-is-the-most-undervalued-mango-semiconductor-stock-right-now">What Is The Most Undervalued MANGO (Semiconductor) Stock Right Now?</a>
<h1 class="wp-block-heading">Analysts See More Upside Ahead For Globalfoundries Stock</h1>
Looking at Wall Street consensus analysts&#8217; estimates of price targets on both these stocks reveals which stock has more upside from current price levels.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="850" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/06143738/consensus-chart-1.png" alt="" class="wp-image-324628" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/06143738/consensus-chart-1.png 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/06143738/consensus-chart-1-229x300.png 229w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Data Source: Yahoo Finance, Compiled by Benzinga
Arista Networks&#8217;s stock has seen good gains over the past year. Consequently, much optimism has already been priced into the stock. Globalfoundries, on the other hand, now shines in more favorable light from current price levels. Analysts see 22.62% upside associated with its stock, relative to 6.69% with Arista Networks&#8217; stock.
Based on valuation multiples and consensus analysts rating, Globalfoundries appears to be the better AI stock pick at current price levels.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/04/38442303/2-semiconductor-mango-stocks-trading-near-52-week-lows-as-they-head-into-q1-earnings">2 Semiconductor MANGO Stocks Trading Near 52-Week Lows As They Head Into Q1 Earnings</a>
Photo: Courtesy Globalfoundries

Analyst Color

AVGO

MRVL

NVDA

Arista Networks Vs. Globalfoundries: Which AI Stock Is The Better Buy Ahead Of Q1 Earnings?

Analysts have been eager to weigh in on the Technology sector with new ratings on Arista Networks (ANET – Research Report) and GlobalFoundries Inc ...

Analysts Offer Insights on Technology Companies: Arista Networks (ANET) and GlobalFoundries Inc (GFS)

There's a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on Arista Networks (ANET – Research Report), Uber Techn...

Analysts Offer Insights on Technology Companies: Arista Networks (ANET), Uber Technologies (UBER) and Microsoft (MSFT)

Arista Networks jumps as Wall Street likes AI story and says 'dark clouds cleared'

Biggest stock movers today: SHOP, UBER, LYFT, RIVN, TWLO, and more

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The rise of artificial intelligence (<a href="https://investorplace.com/stock-quotes/ai-stock-quote/">AI</a>) has been a whirlwind of innovation and growth across numerous industries. That makes the case for the best data center stocks to buy. 



Demand for advanced data center infrastructure has skyrocketed in the last few years. The companies at the forefront of this technological wave are poised to capitalize on the exponential growth in data processing and storage. As AI models become more complex and demand increases exponentially, data centers form the bedrock for power computation and storage needs. 



Investors keen on profiting from the AI craze should be eyeing top data center stocks to add to their portfolios. 



Now, here are the best data center stocks to buy in 2024!



<h2>Dell Technologies (DELL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dell1600-300x169.jpg" alt="Dell (DELL) Technologies Display and Logo"><div>Source: Jonathan Weiss / Shutterstock.com</div></div>Dell Technologies (NYSE:<a href="https://investorplace.com/stock-quotes/dell-stock-quote/">DELL</a>) is a force to be reckoned with in the data center space. Its comprehensive portfolio of servers, storage solutions and networking products provide the foundation for enterprises to build AI-powered infrastructure. 



Dell&rsquo;s PowerEdge servers provide robust performance and scalability, making them ideal for handling the most demanding AI workloads. Additionally, the company&rsquo;s networking solutions ensure seamless data flow with the data center, a critical factor in ensuring AI applications run smoothly and efficiently. Dell&rsquo;s strategic focus on edge computing is also a strong competitive advantage. Wall Street is particularly bullish after the company posted strong results for <a href="https://investors.delltechnologies.com/static-files/12b9be7b-2d4c-4d63-b7d3-8bb467724952">FY23.</a> Although top-line growth fell 14% year-over-year (YOY), net earnings grew 32% YOY to $3.2 billion. These recent developments align perfectly with AI, making Dell stock one of the best data center stocks to buy now.



<h2>Arista Networks (ANET)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/11/arista_anet1600-300x169.jpg" alt="Image of Arista Networks (ANET) logo on the side of a building"><div>Source: Sundry Photography / Shutterstock.com</div></div>Arista Networks (NYSE:<a href="https://investorplace.com/stock-quotes/anet-stock-quote/">ANET</a>) is a powerhouse in high-performance networking solutions. The company specializes in data center switches and routers, delivering lightning-fast speeds, low latency and unmatched scalability. 



Arista Networks&rsquo; technology and infrastructure are critical to developing and deploying advanced AI applications. The combination of its CloudVision platform and EOS cloud operating system is essential for supporting AI workloads that often involve transferring and processing enormous data sets. AI hyperscalers like Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>), Amazon (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) and Google (NASDAQ:<a href="https://investorplace.com/stock-quotes/goog-stock-quote/">GOOG</a>, NASDAQ:<a href="https://investorplace.com/stock-quotes/googl-stock-quote/">GOOGL</a>) rely heavily on Arista&rsquo;s networks for their internal infrastructure. In the 2023 fiscal year, Arista saw record revenue, earnings and FCF from operations. Demand for Arista&rsquo;s products has remained strong, and its operating margins have expanded significantly over the last decade. With AI workloads becoming increasingly more complicated in presenting the case for network conjunction, ANET stock is well-positioned to address these bottlenecks.



<h2>Synopsys (SNPS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/snps1600-300x169.png" alt="Person holding mobile phone with logo of American technology company Synopsys Inc. (SNPS) on screen in front of web page. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div>Synopsys (NASDAQ:<a href="https://investorplace.com/stock-quotes/snps-stock-quote/">SNPS</a>) might not be a household name like the others, but it plays a pivotal role in the data center world. The company provides software tools used in the design of chips found in data center servers, networking equipment and other essential hardware. 



The rise of AI has created a strong tailwind for Synopsys. More sophisticated AI chips are crucial to meet the growing demands of AI workloads. Synopsys&rsquo; tools hold a key to innovation in performance and power efficiency. By working directly with chip designers, Synopsys can help unlock the full potential for enhanced computing power. In the <a href="https://investor.synopsys.com/news/news-details/2023/Synopsys-Posts-Financial-Results-for-Fourth-Quarter-and-Fiscal-Year-2023/default.aspx">2023 fiscal year,</a> Synopsys saw record revenue of $5.84 billion, up 15% YOY. EPS increased 26% YOY to $7.92 per share while delivering strong cash flow from operations. Growth also doesn&rsquo;t seem to be slowing down anytime soon, with revenue up 25% in Q1 FY24 and EPS coming in at the high end of guidance. As leading semiconductors continue to rely on their robust semiconductor IP portfolio, Synopsys is one of the top data center stocks to buy in 2024.



On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a>
<div>Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/the-3-best-data-center-stocks-to-capitalize-on-the-ai-craze/">The 3 Best Data Center Stocks to Capitalize on the AI Craze</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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Arista Networks Q1 Earnings Trifecta: Strong Earnings, Robust Outlook, New Buyback

Barclays analyst Tim Long maintained a Buy rating on Arista Networks (ANET – Research Report) today and set a price target of $320.00. The company'...

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Following analyst upgrades on Wall Street can provide investors valuable insights into the most promising stocks. This approach sharpens the investment edge and highlights opportunities that might otherwise be overlooked in the current volatility. Positive endorsements by brokers are regarded as powerful catalysts for stock prices, often leading to increased investor buying interest. Understanding the fundamental rationale behind these bullish outlooks can help make better-informed investment decisions.



In this article, we take a closer look at three significant analyst upgrades that have captured the attention of Wall Street. They highlight analysts&rsquo; confidence in these companies&rsquo; growth prospects and their potential to outperform in the rest of 2024. However, investors should always consider how these analyst upgrades align with their overall investment strategy and risk tolerance. With that information, let&rsquo;s delve into the specifics of these analyst upgrades and discover why these broker bets are garnering attention in May.



<h2>Arista Networks (ANET)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/11/arista_anet1600-300x169.jpg" alt="Image of Arista Networks (ANET) logo on the side of a building"><div>Source: Sundry Photography / Shutterstock.com</div></div>First on our list of analyst upgrades is the cloud networking solutions provider Arista Networks (NYSE:<a href="https://investorplace.com/stock-quotes/anet-stock-quote/">ANET</a>). It provides switches and routing systems for <a href="https://investorplace.com/2024/05/the-3-best-data-center-stocks-to-capitalize-on-the-ai-craze/">data centers</a> and hyperscalers that connect servers to the cloud.



On May 7, Arista reported solid <a href="https://investors.arista.com/Communications/Press-Releases-and-Events/Press-Release-Detail/2024/Arista-Networks-Inc.-Reports-First-Quarter-2024-Financial-Results/default.aspx">first quarter fiscal 2024</a> results, buoyed by increased AI spending. Revenue surged 16% year-over-year (YOY) to $1.57 billion. Earnings per share (EPS) came in at $1.99, representing a 44% increase YOY.



Analysts are increasingly bullish about Arista&rsquo;s potential to capitalize on surging cloud computing and AI infrastructure spending, highlighting strong growth in data center buildouts. In addition, the company has a favorable positioning within the back-end networking space. We should note that the overall data center capital expenditure is expected to surpass $1 trillion by 2027. Booming investments in AI infrastructure will drive this growth.



Arista&rsquo;s <a href="https://www.gartner.com/reviews/market/data-center-and-cloud-networking/compare/arista-center-vs-cisco">primary competitive advantage</a> lies in its technological know-how to develop faster and more reliable data flows that consume less energy. Its innovative software stack enhances Arista&rsquo;s reliability in developing large AI clusters. Hence, its network solutions command robust margins that generate significant free cash flow.&nbsp;



Year-to-date (YTD), ANET stock is up 17%.&nbsp;Given its robust growth narrative, shares are priced at a premium valuation of 40.7 times forward earnings and 14.7 times trailing sales. Meanwhile, analysts&rsquo; 12-month price target for ANET stock suggests <a href="https://edition.cnn.com/markets/stocks/anet">an upside potential of 11%</a> from current levels.



<h2>TJX Companies (TJX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/tjx1600-300x169.jpg" alt="An outside shot of a T.J. Maxx (TJX) store in Romeoville, Illinois."><div>Source: Joe Hendrickson / Shutterstock.com</div></div>Next up on our list of analyst upgrades is off-price retail giant TJX Companies (NYSE:<a href="https://investorplace.com/stock-quotes/tjx-stock-quote/">TJX</a>). The company operates in apparel and home fashion with key brands like TJ Maxx, Marshalls and HomeGoods.



The retailer is expected to announce the first quarter fiscal 2024 results on May 15. Before that, the <a href="https://investor.tjx.com/news-releases/news-release-details/tjx-companies-inc-reports-q4-and-full-year-fy24-results-q4-comp">fourth quarter fiscal 2023</a> results showed a 13% YOY increase in revenue to $16.4 billion. EPS surged 37% YOY to $1.22, driven by a 5% increase in comparable store sales and rising gross margin.



At present, the retail landscape is difficult for companies to navigate, partly due to the given uncertainty over interest rates. Yet, TJX&rsquo;s ability to attract deal-conscious shoppers across different income levels and its flexible business model gives the company a competitive edge. As consumers seek value amid sticky inflation, the retailer could continue gaining market share from department stores and full-price retailers.



Strong consumer spending and an improving macro outlook suggest a positive overview for the financial year 2025. Analysts expect TJX to beat its financial year 2025 guidance on comparable store sales growth and EPS fronts.



So far, in 2024, TJX stock is up just 1%. Meanwhile, shares are trading at a forward price-to-earnings (P/E) ratio of 23.6x and a trailing price-to-sales (P/S) ratio of 2.1x. Finally, Wall Street&rsquo;s 12-month price targets for TJX shares imply&nbsp;<a href="https://edition.cnn.com/markets/stocks/tjx">an upside potential of 16%</a> from current levels.



<h2>Union Pacific (UNP)</h2>



<div><img width="300" height="165" src="https://investorplace.com/wp-content/uploads/2017/12/unpmsn-300x165.jpg" alt=""><div>Source: Shutterstock</div></div>We discuss analyst upgrades with the leading railroad operator Union Pacific (NYSE:<a href="https://investorplace.com/stock-quotes/unp-stock-quote/">UNP</a>). The company enjoys a duopoly <a href="https://investorplace.com/2024/05/7-stocks-to-buy-before-the-next-great-reset-begins-in-2024/">with BNSF Railway</a> over the U.S. West Coast ports, moving freight across 23 states and gateway cities in Canada and Mexico.



The railroad operator reported <a href="https://www.up.com/cs/groups/public/@uprr/@investor/documents/investordocuments/pdf_unp_1q24_er_slides.pdf" target="_blank">first quarter fiscal 2024</a> results in late April. Operating revenues remained flat at $6.03 billion due to economic headwinds, while EPS increased 1% YOY to $2.69, beating Wall Street&rsquo;s expectations. In addition, free cashflow more than doubled to $525 million, driven by pricing gains that helped to compensate for lower volume and declining fuel surcharge revenue.



Union Pacific&rsquo;s ability to maintain stable revenue and improve efficiency amid economic headwinds in part shows its effective cost management strategies. Despite the flat revenue growth, the group lowered operating expenses in an inflationary environment.



Management&rsquo;s optimistic outlook is based on expectations of stable domestic grain demand and growth potential in other segments. As a result, Union Pacific upgraded its profitability outlook.



Yet, so far in 2024, UNP stock is down 1%. Shares are trading at a forward P/E ratio of 21.2x and a trailing P/S ratio of 6.1x. Wall Street&rsquo;s average 12-month price target for UNP shares implies&nbsp;<a href="https://edition.cnn.com/markets/stocks/unp">an upside potential of 12%</a> from current levels.



On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to <a href="https://www.investing.com/">investing.com</a> and the U.K. website of <a href="https://www.fool.com/">The Motley Fool.</a></div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/broker-bets-the-3-most-notable-analyst-upgrades-to-know-about-now/">Broker Bets: The 3 Most Notable Analyst Upgrades to Know About Now</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Broker Bets: The 3 Most Notable Analyst Upgrades to Know About Now

Earnings season has been a primarily positive period so far. And to the likes of investors, many companies have enjoyed margin expansion. Let's take a closer look at how each currently stacks up.

Earnings Season: 3 Companies Enjoying Margin Expansion

AMZN

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