Why Arista Networks, Talend, and Innovative Industrial Properties Jumped Today
The stock market jumped on Friday, sending the Dow Jones Industrial Average to gains of over 400 points as investors seemed pleased with news out of Washington. The federal government averted another potential shutdown, and building positive momentum made some market participants fearful that they could miss out if stock indexes keep heading upward toward record levels. Some positive news on the earnings front for certain high-profile stocks also improved sentiment. Arista Networks (NYSE: ANET), Talend (NASDAQ: TLND), and Innovative Industrial Properties (NYSE: IIPR) were among the top performers. Here's why they did so well.
Arista heads into the cloud
Shares of Arista Networks shot up nearly 10% after the cloud networking specialist reported its fourth-quarter financial results. Sales jumped 27% from the year-ago quarter, helping to send adjusted net income upward by 33%. The company credited innovations like the rollout of high-speed next-generation 400-gigabit networking technology for its success, as Arista has sustained a big presence at the high end of the cloud computing industry by combining premium products with open-source technology. That's been a winning combination for a long time, and CEO Jayshree Ullal sees few reasons to expect that to change anytime soon.
Image source: Getty Images.
Talend keeps growing
Elsewhere in the cloud space, Talend saw its stock soar 20% following its release of fourth-quarter financial results. The cloud data integration and integrity solutions specialist said that sales jumped 34% from the year-earlier period, with record levels of subscription revenue for its cloud platform. Customer counts topped the 3,000 mark, and Talend continued to boast high retention and greater penetration through cross-selling new services to existing clients. Moreover, the company's outlook for 2019 was encouraging. Now, all it'll take is for Talend to become consistently profitable, and the cloud company will be able to declare ultimate victory.
Innovative Industrial hits the big time
Finally, shares of Innovative Industrial Properties finished higher by more than 7%. The real estate investment trust focusing on properties for cannabis-company tenants was named the latest member of the S&P SmallCap 600 index, as the manager that oversees the index had to name a replacement due to a corporate action involving another component stock. The move validates Innovative Industrial as a noteworthy stock, and it lends greater credibility to marijuana-related stocks in general even as it offers the REIT the opportunity to gain much more access to investment capital in order to expand.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Arista Networks and Talend. The Motley Fool recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.