Why This CIO Is Trading Arista Networks From The Long Side
Quantum Trading Strategies CIO Sean Udall said that Arista Networks Inc (NYSE: ANET) has been a trader's dream – bouncing recently between $60 and $74 per share. At the bottom, Arista has been a "long all day long," while the $73 or $74 price indicates that traders should "sell everything" and "flat out go short," according to Udall.
Now, however, Udall said he is adding Arista Networks to his "long radar." Fundamentally, Udall pointed to Arista's most recent earnings report as "one of the three best earnings reports of the last two quarters." Though the Cisco Systems, Inc. (NASDAQ: CSCO) lawsuit still overhangs the price, Udall likes the recent price action and the stock near technical support from the 50 percent Fibonacci retracement, which he pegged around $65 per share.
Of the most recent price decline, Udall said that it came as the CFO announced she would step down. Udall did not buy it. "A CFO leaving for legitimate reasons is one of the dumbest reasons in the world to sell a stock," he said.
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