tl;dr
Arista Networks (NYSE:ANET) appears poised to benefit from a general increase in cloud capital expenditures by big U.S. tech firms, but demand is mixed for other infrastructure providers, according to Citi Research. Meta (META), Microsoft (MSFT), and Google (GOOG)(GOOGL) all indicated plans to incre...
Arista Networks (NYSE:ANET) appears poised to benefit from a general increase in cloud capital expenditures by big U.S. tech firms, but demand is mixed for other infrastructure providers, according to Citi Research. Meta (META), Microsoft (MSFT), and Google (GOOG)(GOOGL) all indicated plans to increase capex in 2024 when they released quarterly results last week. "With data center capex trending at approximately 2/3rds to 75% of total reported capex for the largest cloud SPs, we view 2024 outlooks positively for the networking infrastructure providers," said Citi analysts Atif Malik, Adrienne Colby, and Papa Sylla in a note Monday. "We note that MSFT and META were 39% of 2023 sales for ANET and maintain ANET as our top-ranked Buy rated stock," Citi added. In addition to the Buy rating, Citi also has a $330 price target on Arista. The Santa Clara-based company designs and sells network solutions for large datacenter and cloud computing. It currently has more than 9,000 cloud customers. Citi also remains high on Coherent Corporation (NYSE:COHR) due to its exposure to AI/ML sales. It rates the company a Buy with a $55 price target. However, Citi sees weakening demand for some of the offerings provided by Maryland-based, networking company Ciena. "Results from large telco providers and key suppliers continue to point to weak trends and ongoing inventory digestion," Malik noted. "Mar-Q capex for AT&T (T) and Verizon (VZ) declined by low teens and high 20s% Y/Y, respectively, with AT&T expecting a low double-digit decline in 2024 capex." Citi rates Ciena as a Sell due to its high telco exposure. For example, AT&T has accounted for about 11% to 15% of its sales for the past decade. Citi has a price target of $44 on Ciena. Arista plans to release its latest financial results on May 7. Analysts expect earnings per share of $1.74 on $1.55B in revenue. Coherent plans to release its latest financial results on May 6. Analysts expect earnings per share of $0.42 on $1.17B in revenue. Finally, Ciena is estimated to release its latest financial results on June 6. Analysts expect earnings per share of $0.14 on $895.8M in revenue.
More about Arista Networks
Arista Networks Summary Arista Networks
Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.
Industry and Sector
Industry: Technology, Computer Communications Equipment
Key Financial Data
Market Cap: $83.01 Billion
Current Price: $40.17
Dividend Yield: None
EPS: $6.59
P/E Ratio: 18.94
ROE: 35.6%
Volume: 5,860,168,000
Average Volume: 292.65
Beta: 0.418
Volatility: 0.208
More about Meta Platforms Inc.
Meta Platforms Inc. Technical Analysis Summary
Meta Platforms, Inc. (formerly Facebook) is a technology company headquartered in Menlo Park, California. The company develops products for connecting and sharing through various devices worldwide.
Sector: Technology
Industry: Services-Computer Programming, Data Processing, etc.
Market Cap: $1.12 trillion
Current Stock Price: $25.51
Dividend Yield: 0.5%
P/E Ratio: 17.38
52-Week High: $55.67
52-Week Low: $32.1
Beta: 0.321
Average Volume: 142.71 million shares
50-Day Moving Average: $517.4
RSI: 1.141 (Overbought)
Bollinger Bands: 0.273 (Narrowing)
More about Microsoft Corporation
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Industry: TECHNOLOGY
Sector: SERVICES-PREPACKAGED SOFTWARE
Market Cap: 301.99 billion
Current Price: $35.21
Change: 2.93
Change (%): 11.54%
52-Week Range: $31.83 - $0.364
Volume: 236,583,993
EPS: $462.44
PE Ratio: 0.2
Dividend Yield: 0.17%
More about Alphabet Inc Class C
Alphabet Inc. Class C Stock Analysis
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Key Statistics
Sector: Technology
Services: Computer Programming, Data Processing, etc.
Market Cap: $2.15 trillion
PE Ratio: 29.95
Dividend Yield: None
Beta: 0.259
Volume: 318,145,987
52-Week High: $165.29
52-Week Low: $0.609
52-Week Change: 0.154
More about Alphabet Inc Class A
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 2,147,724,165,000
P/E Ratio: 29.7
Dividend Yield (%): None
EPS: 5.79
52-Week High: 25.37
52-Week Low: 0.259
Volume: 318,145,987,000
Stock Price: $166.71
Beta: 0.609
Volatility: 0.154
More about Coherent Inc
Company: Coherent Inc
Description: Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a variety of scientific, commercial, and industrial research applications. The company is headquartered in Santa Clara, California.
Industry: LIFE SCIENCES, OPTICAL INSTRUMENTS & LENSES
Market Cap: 8,358,823,000
Dividend Yield: N/A
EPS: -2.82
PE Ratio: 31.91
ROE: -0.0584
Revenue: 4,629,762,000
Debt to Equity: 66.67
Quick Ratio: -0.609
Current Ratio: -0.174
More about Verizon Communications Inc
Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.
Sector: Technology
Industry: Telephone Communications (No Radiotelephone)
Market Cap: 167.02 billion
Price: $14.86
PE Ratio: 2.648
EPS: 2.67
52 Week High: $31.82
52 Week Low: $0.0844
Shares Outstanding: 134.04 billion
Float: 1.00 billion
% Held by Insiders: 44.56
% Held by Institutions: -0.066
Short Ratio: 0.002
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