After two straight winning sessions, the stock market’s selloff resumed on Tuesday. It failed to extend its recovery rally ahead of the central bank’s interest rate decision on Wednesday.
Overall, S&P 500 fell 1.1% to 5,615, while NASDAQ dropped 1.7% to 17,504.
Tweet of the Day
This is bullish https://t.co/fV1Bb1vc28
— David Sharek (@GrowthStockGuy) March 10, 2025
Chart of the Day
Here is the one-year chart of Arista Networks (ANET) as of February 24, 2025, when the stock was at $93.
In last quarter’s earnings call, Arista Networks was impacted by Meta’s (META) decision to cut its spending. For 2024, Meta made up almost 15% of Arista Networks’ total revenues, indicating that Meta spent around $1 billion with the company.
However, in 2023, Meta made up 21% of Arista Networks’ revenue, accounting for $1.2 billion. As such, cutting Meta’s orders in 2024 made an impact to investors causing the stock to pull back.
Management clarified that Meta’s reduced spending in 2024 was due to its “year of efficiency” during which its capital expenditures fell by 15% to 20%. Despite this pullback, management expects Meta to remain a key customer, contributing over 10% of revenue in 2025.
David Sharek, Founder of School of Hard Stocks, thinks that this confusion opens up a buying opportunity for investors.
ANET is part of our Growth Stock Portfolio and Aggressive Growth Portfolio. It is a core tech holding for us.
