Billionaire Steve Cohen’s Top 15 Stock Picks

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3. Arista Networks, Inc. (NYSE:ANET)

Number of Hedge Fund Holders: 70

Point72 Asset Management’s Stake: $337 million  

Arista Networks, Inc. (NYSE:ANET) engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. The following attributes underline the company’s potential as an investment. Firstly, as per the report of the third quarter of 2024, revenue was $1.811 billion, an increase of 7.1% compared to the second quarter of 2024, and an increase of 20% from the third quarter of 2023, and GAAP gross margin was 64.2%, compared to GAAP gross margin of 64.9% in the second quarter of 2024 and 62.4% in the third quarter of 2023. This demonstrates effective cost control and successful product pricing strategies, which are crucial for sustaining profitability as the company expands. Secondly, Arista Networks announced the Arista Etherlink AI platforms, designed to deliver optimal network performance for the most demanding AI workloads, including training and inferencing. Powered by new AI-optimized Arista EOS features, the Arista Etherlink AI portfolio supports AI cluster sizes ranging from thousands to 100,000s of XPUs with highly efficient one and 2-tier network topologies that deliver superior application performance compared to more complex multi-tier networks while offering advanced monitoring capabilities including flow-level visibility.

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