Stock Price Prediction

Technical Analysis: ANET's stock has shown significant volatility in recent trading sessions, with the price dropping from $104.60 to $98.30 on February 21, 2025. The stock is currently in a downward trend after hitting resistance at the $104 level.

Price Targets and Support/Resistance Levels:

• Current Price: $98.74
• Immediate Resistance: $104.60 (recent high)
• Key Support: $98.17 (recent low)
• Next Week's Target Range: $95-102

News and Fundamental Catalysts:

• Q4 earnings beat expectations with revenue of $1.93 billion and adjusted EPS of $0.63
• AI and data center products make up 65% of total revenue
• Concerns about white-box competition and Meta's revenue decline (17% drop in 2024) are pressuring the stock
• Strong deferred revenue growth indicates potential future revenue expansion

Key Technical Indicators:

• Stock is trading below its recent moving averages
• Volume has increased during the recent decline, suggesting strong selling pressure
• RSI indicates neutral conditions between overbought and oversold territories

Trading Recommendation for Next Week: SELL with target price of $95 Rationale:

1. Technical weakness shown in recent price action
2. High valuation concerns with forward P/E of 41x
3. Insider selling activity with Chief Platform Officer selling all shares
4. Broader market uncertainty due to new tariffs affecting tech sector

Entry/Exit Strategy:

• Entry Point: Current market price ($98.74)
• Stop Loss: $104.60 (above recent high)
• First Target: $95.00
• Second Target: $92.00 (if market weakness continues)

The stock is likely to continue its downward trend next week based on technical weakness, valuation concerns, and broader market uncertainties. The recommendation is to take short positions with strict stop-loss management.