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Jim Cramer highlights Arista and Snowflake strength after big run
Arista’s second quarter beat analysts on both revenue and earnings per share, and Cramer pointed to profit taking after the Aug. 5 close.
Jim Cramer said Arista Networks and Snowflake were “worth it” after shares surged, citing strong recent performance and the outlook tied to enterprise technology spending. In the past year, Arista shares rose 49%, and they are up 52% year-to-date, while Snowflake also featured in Cramer’s comments around a potential near-term pullback. According to the coverage, Arista climbed after its second quarter results were released, with the stock closing 3.6% higher on Aug. 5, the day after the earnings report. Cramer characterized a subsequent dip as profit taking, framing it as a “take your breath moment” rather than a change in the companies’ overall trajectory. HousingWire reports that Arista’s second quarter revenue came in at $3.04 billion, with earnings per share of $1.02, and the results beat analyst estimates on both metrics. The company also forecast third quarter revenue of $3.3 billion, which beat expectations, supported by demand tied to ongoing AI buildouts and the company’s Ethernet networking role. The report also cited Arista’s software-led economics, including 63.4% non-GAAP gross margin in the quarter, while noting concentration risk because the business relies on a limited set of large customers. It further stated that Arista’s forward P/E was 46.73, and flagged that large customers could shift toward custom products, a risk the piece said may not be fully reflected in the valuation.