(THIS AI STOCK IS GAINING ATTENTION)
November 1, 2023
Hello everyone,
Welcome to November.
Wall Street is upbeat about an AI stock called Arista.
On Monday, the company earnings exceeded Wall Street expectations on both the top and bottom lines.
Earnings: $1.83/share
Revenue: $1.51
Analysts forecast:
Earnings: $1.58/share
Revenue: $1.48 billion
Arista also issued high-than-expected forward guidance, calling for fourth-quarter revenue in the range of $1.5 billion to $1.55 billion.
Arista’s focus is low-latency networks between clients and the cloud for large-scale data centres, exposing the company to growing investor interest in AI.
The stock is up 63% in 2023.
Analysts believe the company could be the top player in the Ethernet application of AI. Morgan Stanley and Wells Fargo, among others applauded the company report and highlighted the company’s potential AI catalyst for growth heading into 2024.
Morgan Stanley’s Meta Marshall believes growth will accelerate from the adoption of 800G Ethernet transceivers for data centres. Marshall upgraded Arista to overweight and gave the stock a price target of $220 which is more than 25% upside from Monday’s $175.72 close.
Market Update
U.S. 10-year Yields
We have been consolidating since reaching 5.0210% on October 23rd. But we may have another leg up before exhaustion.
Possible targets: 5.25/5.33%
Support lies in the low/mid 4.80%’s.
Happy Wednesday to you all.
Cheers
Jacquie
