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 95.04% per annum.
- ANET price at the close of July 25, 2024 was $314.12 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 90.04% per annum.
- ANET price at the close of July 25, 2024 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: December 15, 2022
End date: July 24, 2024
a = 2.5008
b = 0.0018
s = 0.0703
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 95.04%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0703) – 1
= 32.45%
December 15, 2022 calculations
Top border of price channel:
Exp(Y855)
= Exp(a + b × X855 + 2 × s)
= Exp(a + b × 1,238 + 2 × s)
= Exp(2.5008 + 0.0018 × 1,238 + 2 × 0.0703)
= Exp(4.9070)
= $135.24
Bottom border of price channel:
Exp(Y855)
= Exp(a + b × X855 – 2 × s)
= Exp(a + b × 1,238 – 2 × s)
= Exp(2.5008 + 0.0018 × 1,238 – 2 × 0.0703)
= Exp(4.6260)
= $102.11
July 24, 2024 calculations
Top border of price channel:
Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(2.5008 + 0.0018 × 1,825 + 2 × 0.0703)
= Exp(5.9814)
= $395.98
Bottom border of price channel:
Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(2.5008 + 0.0018 × 1,825 – 2 × 0.0703)
= Exp(5.7004)
= $298.97
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 95.04% per annum.
- ANET price at the close of July 25, 2024 was $314.12 and was inside the primary price channel.
Secondary Trend
Start date: July 3, 2024
End date: July 25, 2024
a = 17.3335
b = -0.0063
s = 0.0276
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0063) – 1
= -90.04%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0276) – 1
= 11.67%
July 3, 2024 calculations
Top border of price channel:
Exp(Y1,242)
= Exp(a + b × X1,242 + 2 × s)
= Exp(a + b × 1,804 + 2 × s)
= Exp(17.3335 + -0.0063 × 1,804 + 2 × 0.0276)
= Exp(5.9868)
= $398.13
Bottom border of price channel:
Exp(Y1,242)
= Exp(a + b × X1,242 – 2 × s)
= Exp(a + b × 1,804 – 2 × s)
= Exp(17.3335 + -0.0063 × 1,804 – 2 × 0.0276)
= Exp(5.8764)
= $356.52
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(17.3335 + -0.0063 × 1,826 + 2 × 0.0276)
= Exp(5.8477)
= $346.44
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(17.3335 + -0.0063 × 1,826 – 2 × 0.0276)
= Exp(5.7373)
= $310.24
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 90.04% per annum.
- ANET price at the close of July 25, 2024 was inside the secondary price channel.