ETFs Last Week: Tech-Fueled Rally Powers Gains During Trade Optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2025
0mins
Should l Buy ANET?
Source: Benzinga
Wall Street Recovery: Wall Street rebounded last week, overcoming losses from the Trump administration's tariff announcement due to positive trade news and strong earnings reports, particularly from tech giants like Microsoft and Apple. The S&P 500 achieved its longest winning streak since May 2024.
ETF Performance Highlights: Several leveraged ETFs saw significant gains, with the Defiance Daily Target 2X Long HIMS ETF leading at a 91.3% increase, driven by interest in telehealth and weight-loss medications. Other notable performers included MAX Airlines 3X Leveraged ETNs and MicroSectors FANG+ 3 Leveraged ETNs, reflecting investor enthusiasm for high-growth sectors.
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Analyst Views on ANET
Wall Street analysts forecast ANET stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 172.620
Low
159.00
Averages
172.88
High
200.00
Current: 172.620
Low
159.00
Averages
172.88
High
200.00
About ANET
Arista Networks, Inc. is a provider of data-driven, client-to-cloud networking for large artificial intelligence (AI), data center, campus and routing environments. Its platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. Its platform is its Extensible Operating System (EOS), a modernized publish-subscribe state-sharing networking operating system. Its portfolio of products, services and technologies is grouped into various categories: Core (Data Center, Cloud and AI Networking), Cognitive Adjacencies (Campus and Routing), and Cognitive Network (Software and Services). It offers product portfolios of data-driven, high-speed, cloud and data center Ethernet switches. Its Cognitive Adjacencies include Cognitive Campus Switching, Cloud-Grade Routing and WAN Routing. Its software and services are based on subscription-based models and include various offerings: CloudVision, Arista A-Care Services, CloudEOS and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arista Networks Q1 Earnings Preview: Strong Growth Expected
- Strong Earnings Expectations: Arista Networks is projected to see a nearly 25% increase in Q1 earnings, driven by ongoing demand from hyperscale cloud customers and superior Ethernet networking solutions, with an expected EPS of $0.81 and revenue of $2.62 billion, reflecting a 31% year-over-year rise.
- Consistent Historical Performance: Over the past two years, Arista has beaten both EPS and revenue estimates 100% of the time, further enhancing market optimism for this quarter's results, showcasing the company's robust competitive position in the industry.
- Future Guidance Focus: The management previously raised the 2026 fiscal year revenue outlook to $11.25 billion, targeting a 25% growth, while maintaining gross margin guidance between 62% and 64% and operating margin at approximately 46%, indicating strong confidence in future growth.
- Risk Factors Highlighted: Despite the optimistic outlook, analysts caution that a muted or negative reaction could occur if future guidance does not meaningfully increase, particularly if Ethernet-based AI networking adoption does not scale as quickly as anticipated, potentially leading to a sharp de-rating of the stock.
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New Era at Berkshire Hathaway as Abel Takes Over
- End of Buffett Era: Berkshire Hathaway reported Q1 earnings with a 4% year-over-year revenue increase and a 120% rise in B shares, although both figures missed expectations, indicating reliance on investment holdings revaluations.
- Acquisition Ambitions: GameStop launched a non-binding bid for eBay at $125 per share, valuing eBay 20% above Friday's close, with potential annual savings of $2 billion if successful, showcasing GameStop's competitive aspirations.
- Market Optimism: The S&P 500 and Nasdaq reached new highs, rising 0.91% and 1.12% respectively, while Bitcoin surged back above $80,000, reflecting investor confidence in economic recovery prospects.
- Earnings Season Begins: Several prominent companies are set to report earnings this week, with Vertex Pharmaceuticals anticipating a 7% year-over-year revenue growth in Q1, and Shopify focusing on the impact of new product spending after 11 consecutive quarters of over 25% revenue growth.
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Nvidia Stock Poised to Trade Above $200 Consistently
- Market Stability: Nvidia stock is expected to consistently trade above $200, a price level that reflects market confidence in its future growth potential, particularly against the backdrop of strong demand in the AI and chip sectors.
- Industry Influence: Earnings reports from other chip and AI companies could positively impact Nvidia's stock, further solidifying its leadership position in the tech industry and attracting more investor attention.
- Investor Confidence: As market optimism regarding Nvidia's future performance increases, investor confidence significantly strengthens, potentially leading to more capital inflows that could drive stock prices higher and enhance the company's market capitalization.
- Innovation-Driven Growth: Nvidia's ongoing technological innovations in AI and high-performance computing not only enhance its product competitiveness but also lay a solid foundation for future revenue growth, further consolidating its market position.
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Stock Market Rebounds, Apple and Broadcom Enter Buy Zones
- Market Rebound: The stock market rebounded late last week after a brief pause, with both the S&P 500 and Nasdaq reaching new highs, indicating a restoration of investor confidence that could lead to increased capital inflows into the market.
- Apple Stock Performance: Apple is currently in a buy zone, as investor expectations for future product launches and sustained growth strengthen, potentially attracting more institutional investors to its stock.
- Broadcom Stock Opportunity: Broadcom has also entered a buy zone, with rising semiconductor demand and ongoing investments in 5G technology leading to optimistic market expectations for its future performance, which may drive its stock price higher.
- Improved Investor Sentiment: The overall market rebound reflects not only a renewed confidence in tech stocks but may also signal signs of economic recovery, prompting more investors to reassess their portfolios.
See More
Stock Market Rebounds, Apple and Broadcom Enter Buy Zones
- Market Rebound: The stock market rebounded late last week after a brief pause, with the S&P 500 and Nasdaq reaching new highs, indicating a recovery in investor confidence and increased market activity.
- Strong Tech Performance: Apple and Broadcom stocks have shown remarkable performance during the rebound, entering buy zones, suggesting a positive outlook on their future growth potential, which may attract more investor interest.
- Improved Investor Sentiment: As major indices rise, investor sentiment has notably improved, enhancing expectations for economic recovery, which could lead to increased capital inflows into the stock market and further price appreciation.
- Technical Analysis Insights: Technical analysis indicates that the strong performance of the S&P 500 and Nasdaq may attract more institutional investors, potentially driving further market gains and creating a virtuous cycle.
See More
Data Center Spending Bubble Talk Disproven This Quarter
- Capital Expenditure Overview: Alphabet, the parent company of Google, estimates its data center spending for 2023 to be between $180 billion and $190 billion, with its stock price rising from $349 to $385, reflecting a 12% weekly gain that indicates strong market confidence in its cloud business growth.
- Amazon Cloud Services Growth: Amazon anticipates $200 billion in spending, with its stock price increasing from $260 to $268, a weekly gain of 1.6%, as its AWS business achieves a quarterly revenue of $37.6 billion, growing at 28%, marking the fastest growth in 15 quarters.
- Apple's Low Spending Strategy: Apple has allocated only $13 billion for data centers, with its stock price rising from $271 to $280, a weekly gain of 3.4%, and despite relying on Google's Gemini service, it maintains high margins due to its global installed base of 2.5 billion devices.
- Challenges for Microsoft and Meta: Microsoft expects to spend $190 billion, with its stock price declining from $429 to $414, a weekly loss of 2.4%, as Azure grows at 40% but lacks market confidence; Meta plans to increase spending by $10 billion, with its stock price dropping from $670 to $605, a 9.8% weekly loss, facing significant uncertainty.
See More
Arista Networks Q1 Earnings Preview: Strong Growth Expected
- Strong Earnings Expectations: Arista Networks is projected to see a nearly 25% increase in Q1 earnings, driven by ongoing demand from hyperscale cloud customers and superior Ethernet networking solutions, with an expected EPS of $0.81 and revenue of $2.62 billion, reflecting a 31% year-over-year rise.
- Consistent Historical Performance: Over the past two years, Arista has beaten both EPS and revenue estimates 100% of the time, further enhancing market optimism for this quarter's results, showcasing the company's robust competitive position in the industry.
- Future Guidance Focus: The management previously raised the 2026 fiscal year revenue outlook to $11.25 billion, targeting a 25% growth, while maintaining gross margin guidance between 62% and 64% and operating margin at approximately 46%, indicating strong confidence in future growth.
- Risk Factors Highlighted: Despite the optimistic outlook, analysts caution that a muted or negative reaction could occur if future guidance does not meaningfully increase, particularly if Ethernet-based AI networking adoption does not scale as quickly as anticipated, potentially leading to a sharp de-rating of the stock.
See More
New Era at Berkshire Hathaway as Abel Takes Over
- End of Buffett Era: Berkshire Hathaway reported Q1 earnings with a 4% year-over-year revenue increase and a 120% rise in B shares, although both figures missed expectations, indicating reliance on investment holdings revaluations.
- Acquisition Ambitions: GameStop launched a non-binding bid for eBay at $125 per share, valuing eBay 20% above Friday's close, with potential annual savings of $2 billion if successful, showcasing GameStop's competitive aspirations.
- Market Optimism: The S&P 500 and Nasdaq reached new highs, rising 0.91% and 1.12% respectively, while Bitcoin surged back above $80,000, reflecting investor confidence in economic recovery prospects.
- Earnings Season Begins: Several prominent companies are set to report earnings this week, with Vertex Pharmaceuticals anticipating a 7% year-over-year revenue growth in Q1, and Shopify focusing on the impact of new product spending after 11 consecutive quarters of over 25% revenue growth.
See More
Nvidia Stock Poised to Trade Above $200 Consistently
- Market Stability: Nvidia stock is expected to consistently trade above $200, a price level that reflects market confidence in its future growth potential, particularly against the backdrop of strong demand in the AI and chip sectors.
- Industry Influence: Earnings reports from other chip and AI companies could positively impact Nvidia's stock, further solidifying its leadership position in the tech industry and attracting more investor attention.
- Investor Confidence: As market optimism regarding Nvidia's future performance increases, investor confidence significantly strengthens, potentially leading to more capital inflows that could drive stock prices higher and enhance the company's market capitalization.
- Innovation-Driven Growth: Nvidia's ongoing technological innovations in AI and high-performance computing not only enhance its product competitiveness but also lay a solid foundation for future revenue growth, further consolidating its market position.
See More
Stock Market Rebounds, Apple and Broadcom Enter Buy Zones
- Market Rebound: The stock market rebounded late last week after a brief pause, with both the S&P 500 and Nasdaq reaching new highs, indicating a restoration of investor confidence that could lead to increased capital inflows into the market.
- Apple Stock Performance: Apple is currently in a buy zone, as investor expectations for future product launches and sustained growth strengthen, potentially attracting more institutional investors to its stock.
- Broadcom Stock Opportunity: Broadcom has also entered a buy zone, with rising semiconductor demand and ongoing investments in 5G technology leading to optimistic market expectations for its future performance, which may drive its stock price higher.
- Improved Investor Sentiment: The overall market rebound reflects not only a renewed confidence in tech stocks but may also signal signs of economic recovery, prompting more investors to reassess their portfolios.
See More
Stock Market Rebounds, Apple and Broadcom Enter Buy Zones
- Market Rebound: The stock market rebounded late last week after a brief pause, with the S&P 500 and Nasdaq reaching new highs, indicating a recovery in investor confidence and increased market activity.
- Strong Tech Performance: Apple and Broadcom stocks have shown remarkable performance during the rebound, entering buy zones, suggesting a positive outlook on their future growth potential, which may attract more investor interest.
- Improved Investor Sentiment: As major indices rise, investor sentiment has notably improved, enhancing expectations for economic recovery, which could lead to increased capital inflows into the stock market and further price appreciation.
- Technical Analysis Insights: Technical analysis indicates that the strong performance of the S&P 500 and Nasdaq may attract more institutional investors, potentially driving further market gains and creating a virtuous cycle.
See More
Data Center Spending Bubble Talk Disproven This Quarter
- Capital Expenditure Overview: Alphabet, the parent company of Google, estimates its data center spending for 2023 to be between $180 billion and $190 billion, with its stock price rising from $349 to $385, reflecting a 12% weekly gain that indicates strong market confidence in its cloud business growth.
- Amazon Cloud Services Growth: Amazon anticipates $200 billion in spending, with its stock price increasing from $260 to $268, a weekly gain of 1.6%, as its AWS business achieves a quarterly revenue of $37.6 billion, growing at 28%, marking the fastest growth in 15 quarters.
- Apple's Low Spending Strategy: Apple has allocated only $13 billion for data centers, with its stock price rising from $271 to $280, a weekly gain of 3.4%, and despite relying on Google's Gemini service, it maintains high margins due to its global installed base of 2.5 billion devices.
- Challenges for Microsoft and Meta: Microsoft expects to spend $190 billion, with its stock price declining from $429 to $414, a weekly loss of 2.4%, as Azure grows at 40% but lacks market confidence; Meta plans to increase spending by $10 billion, with its stock price dropping from $670 to $605, a 9.8% weekly loss, facing significant uncertainty.
See More
