Tuesday’s Headlines: Arista Networks Smashes Expectations

Tuesday’s Headlines: Arista Networks Smashes Expectations

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Trupanion (TRUP) +9.3%

Align Technology (ALGN) +7.6%

Constellation Brands (STZ) +6.8%

Silicon Valley Bank (SIVB) +5.6%

Wynn Resorts (WYNN) +4.7%

Moving Down ⬇️

Coupa Software (COUP) -7.6%

Twitter (TWTR) -4.6%

ServiceNow (NOW) -4.3%

Atlassian (TEAM) -3.8%

Spotify (SPOT) -3.5%

1. Another day, another cloud business reporting an outstanding quarter. Arista Networks (ANET) stock price soared more than 7% yesterday in after-hours trading as the company’s Q3 earnings and revenue topped expectations. Adjusted earnings per share came in at $2.42 a share, versus $2.22 a share estimated on revenue of $605.4, versus $580 million expected. The computer networking company cited an improved business environment as staff worked with clients and suppliers to navigate the pandemic. Jayshree Ullal, CEO of Arista Network, stated ‘our customers are validating our traction as we migrate from legacy to cognitive client to cloud deployments with a cumulative of 40 million cloud networking ports shipped by Q3 2020.’ Read more here. 

2. Paypal’s (PYPL) rocket is returning to earth as Q3 earnings surge, but stock slumps as profit outlook falls short for Q4. Shares fell after-hours yesterday as PayPal expects adjusted earnings to grow just 17% in Q4, down from 41% in Q3. Adjusted earnings per share surpassed estimates at $1.07 a share on revenue of $5.5 billion, versus $0.94 on $5.4 billion forecasted. CEO Dan Shulman said it’s been ‘one of the strongest’ quarters in PayPal’s history, with an addition of 15.2 million accounts in Q3 it’s on track to hit 361 million accounts this year. Shares have gained 72% this year as the pandemic encouraged people to pay for goods and services online. Read more here. 

3. Coupa Software’s (COUP) stock fell almost 8% after announcing a $1.5 billion deal to buy Llamasoft. The software company was particularly attracted to Llamasoft’s new AI-driven supply chain management platform. Artificial intelligence is crucial right now as companies focus on digitalizing processes and require supply chain technology to help them get what they need as supplies can be uncertain due to COVID hotspots. Llamasofts supply chain knowledge combined with Coupa Software’s $2 trillion transactional spend data will empower businesses to make smarter supply decisions faster. Coupa Software’s 4th acquisition of the year has generated $100 million in revenue and has 650 clients, including DHL, Boeing, and GM. Read the full story here.

 

Get this week’s full calendar here

NicoleNicole

Sign up for free to continue reading.