After 3 days of relative decent performance in the software space, the paradigm seen last August continued today. That is despite numerous indications that the enterprise software space had a fairly strong Q4. We bought 1000 shares of Navan in the high growth portfolio as a starter position. Part of the reason we made this…
We made two small additions to the high growth portfolio. We bought another 300 shares of Pure Storage at $67.44. This cost $20, 240 and brings our holding in Pure to 3000 shares. That is a weight of 9.92 in the high growth portfolio. And we bought 100 additional shares of Arista bringing our holding to 200 shares. We…
The last couple of weeks have been painful for investors in high growth IT shares-brutal really. With a crescendo of bubble articles and headlines talking about stretched valuation, good news got interpreted negatively and indifferent news resulted in significant share price compression. Basically, as the year end approaches, some investors, with significant gains have moved…
We made some changes in our cyber-security holdings in the high growth portfolio. We eliminated the starter positions we had in both Palo Alto and Cloudflare. We also eliminated the position we had in Arista Networks. The positions were too small to be meaningful. The shares of Palo Alto and Cloudflare had appreciated modestly since…
Lots of companies have reported their Q2 results-several hundred in fact. Within our high growth portfolio 4 companies out of 8 scheduled to report this week have now done so. For the most part, the earnings reports emerging range from good to excellent. Q2 is shaping up to have been a better quarter for software…
Shares of Rubrik spiked a little this morning and I got off a sale of 300 shares at my limit of $96.99. I had tried for more, but this was the best price at which I got a fill. Investors-or dare I say traders have been very picky with how they react to earnings. Shares of both…
AS we had discussed in this week’s commentary, we believed that the recent appreciation of IT stocks had taken some of the positions in the portfolio to valuations that were a bit stressed. Today, that opinion was seconded by the analyst team at Raymond James with regards to Nutanix. That precipitated our sale of a…
Arista reported results last evening. The results were a significant beat with revenues running 1%+ above the prior consensus and EPS beating expectations by 10%. The company increased expectations for revenues and margins for the current quarter. The shares, however, have fallen by 8.5%. The share price slide is based on this: Now turning to…
Summary Arista Networks is a high-growth IT stock with a strong position in AI infrastructure, making it a compelling buy despite recent market volatility. The company’s valuation, while not a bargain in terms of the currentEV/S ratio, is justified by its continued market share gains and its projected free cash flow margin of 44%. The…
The market had wavered the first two days of the week with an absence of any real market moving data…until the downgrade of US debt by the Fitch rating agency. Economic macros so far are suggesting that declines in employment may be near at hand, while manufacturing activity is bouncing along the bottom. On the…