Oppenheimer analyst Ittai Kidron noted that the ITC staff attorneys in the 944 violation investigation took the position that Arista Networks' workarounds eliminated the patent infringement that was found by the judge in the initial investigation. The analyst views this development as a positive for Arista, providing the first concrete third-party data point supporting the company's claim that its workarounds successfully eliminate the infringement of the patents. Overall, this brings Arista one step closer to putting the 944 investigation behind it, he adds. Kidron reiterates an Outperform rating on the shares.

Bullish option flow detected in Arista Networks with 2,900 calls trading, 1.7x expected, and implied vol increasing almost 2 points to 56.57%. Nov-24 270 calls and 4/26 weekly 275 calls are the most active options, with total volume in those strikes near 770 contracts. The Put/Call Ratio is 0.64. Earnings are expected on May 7th.