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Why Arista Networks Shares Are Dropping Despite Strong Results

Why Arista Networks Shares Are Dropping Despite Strong Results

Arista Networks ( (ANET) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.

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Arista Networks recently reported strong fourth-quarter 2024 financial results, surpassing Wall Street expectations with earnings per share of $0.65 and revenue of $1.93 billion. This impressive performance, driven by a 25% increase in sales and a growing demand for AI infrastructure, showcases the company’s expanding market share. However, despite these positive results, Arista’s stock has dropped 18% in the past few weeks due to investor concerns over delays in AI back-end networking, particularly involving major customer Microsoft. Analysts highlight that any updates on Arista’s 2025 AI sales targets, which are not expected to change, will be crucial for the stock’s future movement. The company’s outlook for the first quarter of 2025 also exceeded expectations, with a revenue forecast of $1.95 billion.

More about Arista Networks

YTD Price Performance: -4.40%

Average Trading Volume: 7,953,688

Technical Sentiment Consensus Rating: Sell

Current Market Cap: $134.6B

For further insights into ANET stock on TipRanks’ Stock Analysis page.

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