Arista Networks Stock Falls Behind Competitors on Wednesday
December 16, 2023
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On Wednesday, Arista Networks ($NYSE:ANET) Inc. stock fell behind its competitors on Wall Street, resulting in a lower performance. Arista Networks Inc. is a leading provider of software-driven cloud networking solutions for large datacenter and campus environments. The company designs and sells cloud networking solutions, including its flagship software-driven cloud networking platform, that use advanced technologies such as software-defined networking (SDN) and cognitive Wi-Fi. Arista products provide customers with a cost-effective, secure, and high-performance network infrastructure that enables them to move faster in today’s digital world.
Arista Networks’ stock performance on Wednesday did not do as well as its competitors and was lower than its recent highs. The company’s stock price appears to be a reflection of the current market conditions, as investors have become more uncertain in light of the ongoing pandemic and economic downturn. Despite this, many analysts remain positive on the company’s long-term prospects and are confident the stock will continue to rise in the future.
Market Price
On Wednesday, Arista Networks Inc.’s stock took a dive compared to its competitors as it opened at $230.5 and closed at $231.0, up a mere 0.6% from its previous closing price of $229.6. This lackluster performance stands in stark contrast to the performance of Arista’s rivals, whose stocks either stayed steady or enjoyed an uptick in value. Such disappointing returns on investment may cause investors to consider other options for their portfolios. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arista Networks. More…
| Total Revenues | Net Income | Net Margin |
| 5.6k | 1.9k | 33.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arista Networks. More…
| Operations | Investing | Financing |
| 1.55k | -433.32 | -87.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arista Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.07k | 2.56k | 20.91 |
Key Ratios Snapshot
Some of the financial key ratios for Arista Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.1% | 45.2% | 37.3% |
| FCF Margin | ROE | ROA |
| 27.0% | 21.1% | 14.4% |
Analysis
At GoodWhale, we have conducted a financial analysis of ARISTA NETWORKS. Based on our Star Chart, ARISTA NETWORKS is classified as a ‘gorilla’ – a type of company that we conclude has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes the company an attractive investment opportunity for a variety of investors. We believe that ARISTA NETWORKS is strong in asset, growth, and profitability, but weak in dividend. Our analysis also found that ARISTA NETWORKS has a high health score of 10/10 with regard to its cashflows and debt, which suggests that it is capable of sustaining future operations in times of crisis. This makes ARISTA NETWORKS an attractive long-term investment for investors looking for a reliable and profitable company. More…
Peers
The telecommunications industry is highly competitive, with Arista Networks Inc competing against Ciena Corp, Eutelsat Communications, Novra Technologies Inc, and others. Arista Networks Inc has a strong product portfolio and a history of innovation, which has helped it to maintain a leading position in the market.
– Ciena Corp ($NYSE:CIEN)
Ciena is a network specialist that provides equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic on communications networks. The company has a market cap of $6.08B as of 2022 and a ROE of 6.6%. Ciena’s products are used in a variety of network architectures, including point-to-point, metro, and core networks.
– Eutelsat Communications ($LTS:0JNI)
Eutelsat Communications is a French-based company that provides satellite communication services to broadcasters, content providers, Internet service providers, mobile operators, and business and government customers. As of 2022, the company had a market cap of 1.93 billion and a return on equity of 9.77%. Eutelsat Communications operates a fleet of 38 satellites that provide coverage over Europe, the Middle East, Africa, Asia-Pacific, and the Americas. The company also provides ground infrastructure and teleport services.
– Novra Technologies Inc ($TSXV:NVI)
Novra Technologies Inc is a publicly traded company with a market capitalization of 3.01 million as of 2022. The company has a return on equity of 28.3%. Novra Technologies Inc is a technology company that specializes in the development and commercialization of products and solutions for the satellite and cable television markets. The company’s products and solutions are used by broadcasters, network operators, and content providers to distribute video, audio, and data signals.
Summary
Arista Networks Inc. (ANET) stock performed poorly on Wednesday, underperforming competitors. Investors are advised to consider the macroeconomic and industry factors that may have contributed to the stock’s decline. A thorough analysis of the company’s financial and operational health, including a review of its balance sheet, income statement, cash flow statement, and competitive position in the market should be conducted.
Additionally, investors should evaluate ANET’s competitive advantages, such as its innovative technology and product portfolio, and opportunities for growth. Finally, company risk factors such as legal concerns, regulatory actions, and management changes should be taken into account when making an investment decision.
