Technical Analysis: Based on the recent price action, ANET has shown significant weakness, dropping from $109.05 to $106.87 on February 14, representing a -2.62% decline . The stock is currently trading below its recent highs, showing bearish momentum.
News Impact: Several significant developments are affecting ANET's price outlook:
Tariff Concerns: New tariffs announced by the Trump administration on Canada, Mexico, and China have created market uncertainty. ANET is particularly vulnerable as it derived nearly $140 million from Asia-Pacific clients last quarter.
AI Infrastructure Investment: A positive catalyst emerged with the formation of Stargate - a joint venture between OpenAI, Oracle, and Softbank planning to invest up to $500 billion in U.S. AI infrastructure. This could benefit ANET as a provider of networking hardware.
Price Prediction for Next Week: Based on technical analysis and news sentiment:
Target Prices:
Recommendation: SELL Rationale:
The stock is likely to face continued pressure next week due to tariff concerns and pre-earnings jitters. While long-term AI infrastructure investments remain positive, the near-term risks outweigh potential upside.
Key Price Levels to Watch:
The stock is expected to trade between $105.00-$108.00 next week, with a downward bias ahead of earnings.
Arista Networks has gained a top market share position in high-speed switching, resulting, in our view, from technology leadership, and it continues to gain share.
Arista holds best-in-class profit margins and earns robust economic profits, reflecting its strong value proposition and wide economic moat.
Arista earns heady free cash flow, which it can use for organic investment and shareholder returns.
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