Arista Networks has been one of the best stocks of 2017.  Shares were hit on legal battle news with Cisco in January, but they’ve not looked back since.  This is incredible price action.  Top 1% of all stocks type of stuff.

Arista Networks is one of the cleanest IPO base breakouts out there.  In fact, it’s the closest thing markets have seen to the Tesla IPO base breakout.  Check it out.

First let’s look at that Tesla IPO base.  Initially there was very strong demand, then it based for a couple of years.

tsla ipo.png

The same thing happened with Arista.  After strong demand on the IPO, it settled in and based for a couple of years before breaking higher.  In the move higher, it’s gone vertical with no selling.  Is it possible this is a Tesla like stock?


One key differentiator is the fact that volume has not expanded that much compared to Tesla.  That said, Arista has been in the news for years with the Cisco legal battle.

Who knows if this will continue playing out like that, but given that their main competitor is threatened enough by them to take them to court, maybe we’re on to something here.

For further reading on the company, Capital Market Labs has described the company’s opportunity.

Trade ’em Well

Disclosure:  I have no position in Arista Networks at the time of this writing.  

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