QQQs -20bps as yields slightly tick up to start the day. BTC +1.4%; China flat.We’ll get into earnings first then News/Research… Let’s get straight to it…
ANET -6%: Mixed as Raised FY25 Rev growth to high end of 15-17% (street at 19%). Reiterated targets for new markets, but concerns over META concentration / AI Back end target.
The 15-17% growth vs street at 19% will be seen as conservative and bulls will say this should trend to mid 20s as evidenced by March q guide of 24% y/y growth.
One of main investor nitpicks is META concentration which came in at 15% of revs (vs 21% last year, down 15% y/y). ANET remained confident that META would remain a >10% customer in CY25 and explained the slower growth away as rev comes on a lag and says that was driven by CY23 META’s year of capex efficiency. Bears will point to this as evidence ANET is losing share at META while bulls will say ANET rev at META should grow in CY25.
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