Jason Snipe, CIO, Odyssey Capital Advisors Arista Networks, Inc. ANET-N COMMENT Feb 19, 2025

A great company that's impervious to rate hikes. They pay down their debt which is 3% of overall annual cash flow. They reduced debt by 20% last year. 23% revenue growth in the past year.

Largest holding in his momentum portfolio. Almost made it a Top Pick today. Not deterred by the chart's steep incline. Acceleration of AI adoption will have trickle-down effects. Earnings are growing quickly, estimates are rising, stock price is going up and to the right. Good things ahead. High conviction holding. Given growth prospects, undemanding valuation of less than 30x. PEG ratio is pretty modest.

A fine CEO here. Trades at a high PE, but they make a lot of money.

He was asked to compare Nvidia and Arista. He feels Nvidia has 3 to 5 years more growth and even though it is getting a little expensive he would hold. Arista is one of the networks to move all the AI information and is a consistent grower with a good future.

Loves it. Getting closer to the upper range of the channel, but nothing to worry about. He clipped some profits, which he often does when a stock's really volatile -- it's more like housekeeping, tending the portfolio garden and being a good steward of your assets.

For new buyers, over the next month he'd look for a spot to add.

A great CEO and a smokin' hot business.

Guidance in this earnings season has not been good, and it can't be when you're unsure what the effect of tariffs will be. ANET's guide came in a little short, not 15-17% revenue growth as expected. The stock is breaking down, below its 100-day moving average. These names are relying on price momentum until they hit an earnings event.

Fallen off a lot, but so have similar companies like CLS and DELL. If he's correct that the tariff issue will settle down over the next couple of months, this is a great place to buy. 12-month price target of $138. Cyclical. Hardware side is very leveraged, so susceptible to interest rate moves.

Likes the CEO. Shares have fallen too far. Would buy here at $70.