Arista cats purr over $2B quarter while tariff time bomb ticks Arista Networks is warning investors of the fear, uncertainty and doubt caused by the Trump administration's shifting trade policies. The admonition came amid a strong start to 2025 thanks to demand from datacenter, cloud, and enterprise customers buying networking hardware in preparation for generative AI deployments. trump …
...the stock market is.
Profitable company says margins may be lower next quarter, shares drop.
AI company says it's going to hemorrhage even more cash this year, with no road map to profitability other than "it's going to be even better AI", shares go up.
What a time to be alive.
Yup. But it's really not very different from how it's ever been.
Every new hype cycle tends to spawn a few (sometimes many) companies which have some amount of immunity to rationality in the stock market, at least for a while. Virtualization, flash storage, Cloud, etc., now AI. The last one seems even more hype driven than the earlier ones, so maybe things are getting worse.
It's probably mostly a result of the relentless obsession with quarterly profits over long-term success.
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