markets

Luke Kawa8/6/25

Arista Networks soars after crushing earnings, boosting guidance, and getting Wall Street price target hikes

Cloud networking company and data center supplier Arista Networks is leading all S&P 500 stocks in premarket trading, up double digits after reporting knockout second-quarter results and boosting its full-year forecast.

Arista reported revenues of $2.2 billion, $100 million above what analysts anticipated, with adjusted earnings per share of $0.73, well north of the $0.65 estimate.

Its Q3 guidance for sales was modestly higher than expected at $2.25 billion, and the company raised annual revenue expectations to $8.75 billion from $8.2 billion.

“We’re looking to achieve $10 billion in revenue in 2026, two years ahead of schedule,” CEO Jayshree Ullal added. “I promised you guys that back in the last Analyst Day in 2028. So there you go. That’s the headline.”

Its outlook for near-term profitability was also impressive. Management called for an adjusted operating margin of about 47% in the current quarter, while the Street had been thinking that number would come in around 44.3%.

“The uptick in AI-infrastructure spending plans by key customers (Meta, Microsoft, Oracle) is an encouraging sign that it could deliver $900 million-$1 billion in AI back-end networking sales this year,” Bloomberg Intelligence senior industry analyst Woo Jin Ho wrote. “The company’s work with other AI accelerators could mean more AI sales.”

A host of analysts are hiking their price targets on the stock in the wake of the results, with UBS going to $155 from $115, KeyBanc up to $145 from $115, Melius Research raising to $160 from $137, and Piper Sandler up to $143 from $89, among others.

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General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

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markets

J. Edward Moreno7/7/26

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings

markets

Paige Oamek6/30/26

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

Revenue of $11.0 billion (estimate: $10.8 billion).
Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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