We're Buying More Shares of This Holding After Dell's 'Strong Ramp'
Comments from Dell, Amazon and others support our move, but we’re also eyeing these upcoming dates as potential catalysts.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
ANET | Buy | 143 | 126.70 | 1,325 | 3.1 |
After you receive this Alert and when the market opens, we will buy 143 shares of Arista Networks (ANET) at or near $126.70. Following the trade, ANET shares will account for roughly 3.1% of the Pro Portfolio's assets.
Following up on our discussion of Dell’s (DELL) strong ramp in its AI server business, including the expected sequential increase of more than 65% in shipments this quarter and the visibility its current backlog brings, we are adding additional ANET shares to our holdings. This buy will nudge down our average cost basis for the overall position, but it also leaves additional room for us to take another bite or two should next week’s economic data bring market volatility along with it.
The combination of recent guidance from Dell and Nvidia (NVDA) , and recent announcements that Amazon (AMZN) and Google (GOOGL) will invest billions for U.S. government and other entities, points to Arista Networks issuing what should be upbeat comments when management makes the rounds at investor conferences in the next few weeks. We can also likely include Amazon’s upcoming AWS Re Invent Conference slated for Monday, December 1.
On tap, that Arista team is expected to present at the UBS Global Technology and AI Conference on December 2, which will also include presentations from Pro Portfolio names Axon (AXON) , Eaton (ETN) , and Microsoft (MSFT) .
That Arista presentation will be followed up by others at the Raymond James TMT and Consumer Conference on December 9 and Barclays 23rd Annual Global Technology Conference on December 11. Axon and Microsoft will also be making presentations at the Barclays conference.
On the housekeeping front for ANET shares, we’ll maintain our $180 price target, which offers ample reason to reiterate our One rating at current levels. However, given our move to buy more shares, we will inch our panic point down to $110 from $120, although as the shares rebound we expect to raise that level over time.
Note: A previous version had an incorrect ticker in the table.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long ANET, NVDA, GOOGL, MSFT, AXON, ETN and AMZN.
