ANET Pulls Back as AI Switch Leader Consolidates Around $150 Support
$Arista Networks(ANET)$
$153.55 (−2.56%): Post-earnings pullback as AI switch leader digests lofty expectations in the $150–165 band
Market recap (as of Nov 4, 2025 close):
Arista Networks (ANET) fell to $153.55 from a prior close of $157.59, now about 6.9% below its 52-week high near $164.94 and still up ~39% YTD.
Q3 numbers beat on EPS and revenue, but management’s Q4 revenue guide of $2.30–2.40B was only in line with Street expectations and commentary around moderating sales growth and “slowing” trajectory for parts of the business cooled some of the AI-infrastructure euphoria.
Profit-taking after a strong multi-month run, plus headlines highlighting the in-line outlook, drove a risk-off reaction in high-multiple AI names; after-hours trading even saw ANET briefly marked down toward the mid-$130s before stabilizing, underscoring how sensitive the stock is to guidance nuance. (TradingView)
Technical & trend:
volume around 8.7M was roughly in line with its 8.6M average, MACD has turned down but remains above the zero line, and RSI(14) near 53 is backing off from prior overbought territory—more like a high-level consolidation than a broken up-trend for now.
Price is testing the rising 20-day EMA around $152.4, with the 50-day EMA near $145; as long as the $150–152 zone holds, bulls still control the bigger structure, while a daily close below $150 would likely flip short-term SAR signals and invite a pullback toward $145–140.
Near term (next 5 trading days), base case is choppy trading inside $150–160: a decisive close above $158–160 re-opens a push toward $164–170, whereas sustained trade below $150 puts $145 / $140 back on the map
Support: $152/$140;
Resistance: $160 / $166-167).
On valuation, ANET trades at roughly 60× TTM earnings versus an S&P 500 multiple around 28–30× and its own 10-year average in the high-30s, while the street’s 12-month consensus target near $161 (high ~$185, low ~$113) implies only modest upside unless AI data-center demand and share-gain narratives re-accelerate. (FullRatio)
Risk & disclaimer:
AI capex cycles, hyperscaler order timing, competitive responses from legacy vendors, macro shocks and rapid multiple compression can all produce moves well beyond the levels discussed here. This note is for internal technical commentary only and does not constitute investment advice or a recommendation to buy or sell any security.
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