Entry 24.09/03
87.50
Stop-Loss
75.00
Target 24.12/16
113.80
Target Price Achievement 30.06%
  • Investing Points
  • Stock Attractiveness


[Recommended Stock Earnings Review]
Arista Networks, 2025 AI-Related Revenue Target of $1.5 Billion

■ Trading Strategy (2024-11-08)
  • Investment Rating : Hold
  • Recommendation Price: $350
  • Current Price: $431.02
  • Target Price: $455
  • Current Return: +23.15%
☞ Arista Networks' stock fell 4.4% in after-hours trading following the earnings announcement. Despite exceeding market expectations for Q3, the downward revision of 2025 revenue growth from 17% to 14–15% appears to have impacted the market. However, the stock's upward trend remains intact, so we maintain a hold rating with a target price of $455.

■ Key Highlights of the 3Q Earnings
  • Exceeded Both Q3 Guidance and Consensus: Revenue was $1.81 billion (+20% YoY), operating income was $780 million (+30%), net income was $750 million (+37%), and Non-GAAP EPS was $2.40 (+31%), with revenue and EPS beating consensus by 3% and 15%, respectively.
  • Strong Growth Anticipated in the AI Networking Market: Arista offers a high-speed network Ethernet portfolio tailored to AI and large-scale learning workloads, as well as AI traffic solutions like the 77R4 Distributed Etherlink 7700 and 7800 AI Spine for large AI accelerator clusters. The company has secured five major AI customers.
  • Q4 Guidance: Revenue is expected to be $1.85–1.9 billion, with a Non-GAAP gross margin of 63–64% and Non-GAAP operating margin of 44%.
  • 2025 Guidance Revised Downward: Revenue growth for 2025 is expected to slow to 15–17%, down from 18–19% in 2024. Arista aims for $750 million in revenue each from AI back-end and campus networks, with total AI center network revenue expected to reach $1.5 billion. Annual growth is projected to remain at 15–17% through 2026.
  • Stock Split Announced: A 4-for-1 stock split has been approved, scheduled for December 4.

Recent Stock Price Trend


■ Previous Trading Strategy
☞ Expanding Market Share from Data Centers to AI Networking

Important Notice

All content provided by DataHero is solely for informational purposes and is not posted with the intention to sell or recommend specific stocks.

The content of DataHero is not a research report and should not be used as the sole basis for investment decisions. All investments carry risk, and past performance of financial products does not guarantee future results or returns.

When investing in financial products, one should always be aware of the possibility of financial loss and investors should carefully consider their investment objectives and risks before investing.

Stock Attractiveness

More
86 / 100 Quality

Financial Ratios

Profitability(Annualized)24.09/30
Operating Margin 42.11%
ROA 23.70%
ROE 32.50%
ROIC 47.90%
Stability24.09/30
Current Ratio 446.80%
Debt Ratio 0.00%
Receivable 62D
Growth(YoY)24.09/30
Revenue Growth 18.19%
Net Income Growth 40.19%
R&D/Revenue 13.96%
Valuation24.09/30
PER 45.25
PBR 13.04
PSR 18.23
EV/EBIDTA 37.67

US STOCK SIGNAL Premium

Long Profits ~ Short Losses! Invest in U.S. stocks with signals!

  • Trading Strategy for Carefully Selected Stocks! Stock Recommendations
  • Long Profits ~ Short Losses! Invest in U.S. stocks with trading signals
  • Trading Signals of Watchlist Stocks
  • Unlimited Stock Diagnostics including Trading Signals, Valuation, and Supply and Demand
US Stock Signal Subscribe. Now!
Membership How to link

AI Signals

We swiftly provide trading signals for stocks using over 10 years of financial big data and algorithm technology.

The trading signals are presented in the sequence of Buy-Hold-Sell-Wait.

Along with the trading signals, check for quality stocks with smart scores, valuation, and supply and demand analysis scores.

Term Explanation

Highest Return : The highest profit rate among trade signals.

Total Return : The actual rate of return if all trade signals were followed.

Watchlist stocks.

You can conveniently check the AI trading signals for your Watchlist stocks.
(Exclusive to paid members)

My watchlist stocks.

Watchlist stocks.

This is a premium service.
By subscribing to the service, you can conveniently check the trading signals for your Watchlist stocks.

US STOCK SIGNAL Subscribe!

Recommendation Service

Our Recommendation Service identifies the best stocks through the analysis of performance, finances, fair stock prices, and stock price trends of over 6,200 U.S. stocks.

  • - We evaluate the profitability, growth potential, safety, and market dominance of companies to uncover the best blue-chip stocks.
  • - We calculate the optimal fair stock price based on our proprietary fair price estimation algorithm.
  • - We inform you of the best trading times by analyzing whether the stock price is likely to rise quickly and through short-term, medium-term, and long-term stock price trend analysis.