Arista Networks (ANET)
Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 80.84% per annum.
- ANET price at the close of April 2, 2025 was $80.16 and was lower than the bottom border of the primary price channel by $26.23 (24.66%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 91.26% per annum.
- ANET price at the close of April 2, 2025 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of ANET price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: May 18, 2022
End date: February 18, 2025
a = 1.8656
b = 0.0016
s = 0.0804
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0016) – 1
= 80.84%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0804) – 1
= 37.92%
May 18, 2022 calculations
Top border of price channel:
Exp(Y535)
= Exp(a + b × X535 + 2 × s)
= Exp(a + b × 775 + 2 × s)
= Exp(1.8656 + 0.0016 × 775 + 2 × 0.0804)
= Exp(3.2843)
= $26.69
Bottom border of price channel:
Exp(Y535)
= Exp(a + b × X535 – 2 × s)
= Exp(a + b × 775 – 2 × s)
= Exp(1.8656 + 0.0016 × 775 – 2 × 0.0804)
= Exp(2.9628)
= $19.35
February 18, 2025 calculations
Top border of price channel:
Exp(Y1,224)
= Exp(a + b × X1,224 + 2 × s)
= Exp(a + b × 1,782 + 2 × s)
= Exp(1.8656 + 0.0016 × 1,782 + 2 × 0.0804)
= Exp(4.9188)
= $136.84
Bottom border of price channel:
Exp(Y1,224)
= Exp(a + b × X1,224 – 2 × s)
= Exp(a + b × 1,782 – 2 × s)
= Exp(1.8656 + 0.0016 × 1,782 – 2 × 0.0804)
= Exp(4.5973)
= $99.22
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 80.84% per annum.
- ANET price at the close of April 2, 2025 was $80.16 and was lower than the bottom border of the primary price channel by $26.23 (24.66%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: January 15, 2025
End date: April 2, 2025
a = 16.5091
b = -0.0067
s = 0.0634
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0067) – 1
= -91.26%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0634) – 1
= 28.89%
January 15, 2025 calculations
Top border of price channel:
Exp(Y1,202)
= Exp(a + b × X1,202 + 2 × s)
= Exp(a + b × 1,748 + 2 × s)
= Exp(16.5091 + -0.0067 × 1,748 + 2 × 0.0634)
= Exp(4.9663)
= $143.49
Bottom border of price channel:
Exp(Y1,202)
= Exp(a + b × X1,202 – 2 × s)
= Exp(a + b × 1,748 – 2 × s)
= Exp(16.5091 + -0.0067 × 1,748 – 2 × 0.0634)
= Exp(4.7125)
= $111.33
April 2, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(16.5091 + -0.0067 × 1,825 + 2 × 0.0634)
= Exp(4.4522)
= $85.82
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(16.5091 + -0.0067 × 1,825 – 2 × 0.0634)
= Exp(4.1984)
= $66.58
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 91.26% per annum.
- ANET price at the close of April 2, 2025 was inside the secondary price channel.