No. of Recommendations: 4
Exaggeration on my part. Doesn't make ANET look anemic.

Your call on STMP has been outstanding. I was looking at them in the $80s and missed out. C'est la vie as you can't own them all.

As far as Arista:

This is a company that has been growing at a 30% steady, and I mean steady, clip for quite some time. For the 2nd quarter in a row (and this is all from memory FWIW), they've grown at 50%. Last quarter Jayshree and Ita were very coy about their growth, stating they just couldn't keep spending on par with revenue growth or something of that ilk. Earnings grew 95% this quarter in the face of their largest vertical delaying something due to certification problems. Also could be read as: "Cloud Titan business should increase next quarter with the certification issues behind us and all of our other verticals are performing great."

Next quarter's guidance is a measly 40% revenue growth which I expect will be surpassed. More importantly, margin guidance IIRC is 63% to 64%. This is a narrower gap than in the past which has generally been 61% to 64%. The lower end of the scale meant Arista needed to employ more domestic manufacturing at a higher cost. Narrowing the scale toward the higher end could be pointing to less of a legal concern on patents.

Take care,
A.J.
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