Positive Outlook for Arista Networks and Robinhood Stocks

Market optimism is high as investors eye Arista Networks and Robinhood Markets, both showing strong earnings guidance and impressive growth. With significant revenue projections and upbeat earnings estimations, these stocks could witness further upward movement.

Date: 09-02-2025

AI Rating: 7

Wall Street Overview
Despite various challenges such as the DeepSeek AI news and tariff concerns, Wall Street bulls have maintained their positions as the stock market begins 2025. This resilience is partly due to largely positive earnings results and guidance.

Arista Networks (ANET)
Arista Networks has shown remarkable growth, with its revenue increasing from $361 million in 2013 to an anticipated $8.18 billion in 2025. The company's average sales growth over the past three years has been 37%, and expectations for FY24 and FY25 project increases of 19% and 18%, respectively. This demonstrates a consistent upward trend in revenue growth, which is a key factor for investors. Furthermore, ANET’s earnings forecasts are robust. The company is projected to see adjusted earnings grow by 26% in FY24 and 10% in FY25, following a significant EPS increase of 52% in FY23. These earnings revisions, along with a Zacks Rank #1 (Strong Buy), depict a positive sentiment among analysts.

Robinhood Markets (HOOD)
Robinhood has indeed made a significant comeback. The stock soared by 385% over the past year, demonstrating strong demand for its services. Analysts expect HOOD's revenue to increase by 54% in FY24 and by 23% in FY25, reaching $3.53 billion. This substantial revenue growth is coupled with an anticipated swing from an adjusted loss of -$0.61 last year to an estimated profit of +$0.97 in 2024, indicating a shift towards profitability that is highly favorable for potential investors. Furthermore, Robinhood's active user base grew 7% YoY, contributing to a heightened average revenue per user, which rose by 31%.

The overall outlook for both Arista Networks and Robinhood Markets appears robust, driven by strong sales and earnings growth expectations, making them potentially lucrative investment opportunities in 2025.

Stocks: ANET HOOD MSFT META