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…
Summary Alteryx Q4 earnings were a significant upside with better than expected results for revenues, ARR and non-GAAP operating profits.The company is benefitting from a significant set of initiatives including a new go-to-market motion and a cloud analytics platform.The company is benefitting from a significant set of initiatives including a new go-to-market motion and a…
Reviewing a busted recommendation The last 13 months have been a humbling experience. I feel bloody but try to remain unbowed. It has been next to impossible to make successful recommendations-at least as I define successful. Even companies that I have recommended on SA such as Adobe (ADBE), Wix (WIX), Trade Desk (TTD) and Arista…
Earnings season is in the process of getting started. In the dim past-say a year ago, it was a time to look forward to-which companies would report a blow-out and speculate as to whether a blowout might levitate the share price of the company reporting strong results to a further high. These days earnings season…
Several subscribers have asked me to comment about the share price implosion in the IT space this past week and what names can be bought to take advantage of this panic. I do think that this is a panic that presents some opportunities for subscribers with spare cash. The concept of this panicis is that…
Summary Arista recently reported a quarter that marked an inflection in the company’s business. The company beat expectations substantially for revenues and earnings and provided guidance above prior consensus. The company specifically articulated a forecast for double digit revenue growth next year. While the shares appreciated 30% in the wake of the earnings release, there…
This has been a newsworthy week in terms of corporate developments in the IT world. Of course for the Ticker Target Hi-Growth Portfolio, the most signal event was the strong, pre-announced results of Alteryx that have driven the shares up about 25%. But there have been some other interesting developments that may be tradeable events…
The market continues to climb that proverbial wall of worry. After a rather difficult May 1st markets continue to rally. From time to time I read commentators bemoaning this supposedly “unloved” rally. Yesterday I spoke to a subscriber who has chosen to escape the rally, hiding out in cash. His issue is how does anyone forecast…
Thursday’s price action has seen some consolidation in the IT sector after a halcyon performance on Wednesday. No more than anyone else, I have no idea if the bottom is in-I hope it is, and I have made my portfolio bets that way, but sentiment in the last few weeks has been like quicksilver. Sometimes…