panumas nikomkai/iStock via Getty Images Back in November, I upgraded Arista Networks, Inc. ( ANET ) from a sell to a hold rating. I remained relatively cautious on the stock, as the business seemed supply constrained and the valuation was deemed to have been fair. As shown in the rating history chart below, Arista Networks has had very mild gains since then. Today, I will evaluate their most rece...
panumas nikomkai/iStock via Getty Images Back in November, I upgraded Arista Networks, Inc. ( ANET ) from a sell to a hold rating. I remained relatively cautious on the stock, as the business seemed supply constrained and the valuation was deemed to have been fair. As shown in the rating history chart below, Arista Networks has had very mild gains since then. Today, I will evaluate their most recent earnings reported in mid-February as well as assess how some recent developments are affecting their outlook. The goal today is to provide readers with an updated perspective and see if the stock has become a buy in my eyes. Seeking Alpha In the below analysis, it is shown that Arista Networks continues to be supply constrained as purchase commitment growth far outpaces revenue increases. While this risk may have played a factor in their 2026 guidance, the company has a massive opportunity at hand, and recent developments show that the likelihood of them capturing a good part of the TAM is high. Therefore, the valuation contraction since my previous article has created a buying opportunity in my view. TAM Continues To Grow Arista Networks Investor Presentation Before looking specifically at their 2025 Q4 financial results, let's take a big step back and briefly discuss the multiyear opportunity at hand. As you can see in the infographic above , their TAM expanded notably in 2024 from 2023. However, that is a relatively small increase when compared to 2025's annual expansion. TAM is now $105 billion, and while their Core business is taking the spotlight due to the AI boom, their Strategic Expansion and Cognitive Networks businesses also have significant room to grow over the next few years. What investors should take away from this is that the opportunities for Arista Networks are expanding at an accelerating pace. Now, it's likely a matter of execution by management to see how much of the market they can capture. Growth Ticks Up Data by YCharts For their 2025 Q4 results,...
Shares of Hong Kong's MTR Corp. fell on Friday after it reported full-year net income for 2025 that missed analyst estimates. Still, CEO Jeny Yeung says the company's fundamentals remain strong, citing high occupancy rates at its shopping malls and record passenger growth. (Source: Bloomberg)
Shares of Hong Kong's MTR Corp. fell on Friday after it reported full-year net income for 2025 that missed analyst estimates. Still, CEO Jeny Yeung says the company's fundamentals remain strong, citing high occupancy rates at its shopping malls and record passenger growth. (Source: Bloomberg)