Arista Networks Stock Rises on Wednesday, But Falls Short of Market Performance
January 12, 2023
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Arista Networks ($NYSE:ANET) is a cutting-edge technology company that specializes in cloud networking solutions for businesses. The company’s stock, symbol ANET, recently rose on Wednesday, yet still underperformed the market. This slight increase was a result of strong data center sales and strong demand for their products. This decrease could be attributed to a number of factors, including the uncertainty surrounding trade relations between the U.S. and China and the overall volatility of the market. Arista Networks has been making a number of moves to stay competitive in the cloud networking market.
Last year, they acquired Mojo Networks and Big Switch Networks, both of which are expected to help the company increase its customer base and expand its offerings. The company is also focusing on building out its software offerings, with the goal of creating a fully integrated cloud networking solution for businesses. The company has been making a number of strategic moves to remain competitive in the cloud networking market and continue to grow their customer base. With their innovative products and services, Arista Networks may soon be able to reach its all-time highs again.
Price History
While overall media coverage of the company is currently mixed in terms of sentiment, the stock opened at $115.2 and closed at $116.3, up by 1.0% from its last closing price of 115.2. Despite this modest increase, Arista Networks stock still has not been able to keep up with the broader market performance. Overall, the recent news about Arista Networks has been mostly positive, with analysts praising their new products and services. The company is also making strides in the artificial intelligence space, which could be beneficial for their future growth.
However, the stock performance on Wednesday indicates that investors may still be a bit wary of the company’s prospects in the near-term. Despite the slight dip in Arista Networks stock on Wednesday, analysts are still optimistic about the company’s long-term outlook. With the right strategies in place, Arista Networks could potentially become a major player in the networking industry. The company’s recent acquisitions and investments in cutting-edge technologies have given investors some hope that Arista Networks could eventually make a significant impact in the market. 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 |
| 3.93k | 1.16k | 28.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arista Networks. More…
| Operations | Investing | Financing |
| 677.58 | 234.95 | -820.84 |
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 |
| 6.16k | 1.78k | 13.16 |
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 |
| 17.0% | 17.2% | 31.4% |
| FCF Margin | ROE | ROA |
| 16.1% | 19.7% | 13.4% |
VI Analysis
Investors looking for long-term potential should consider the fundamentals of a company like ARISTA NETWORKS. According to the VI Star Chart, ARISTA NETWORKS is classified as a ‘gorilla’, a type of company that benefits from strong competitive advantages to achieve stable and high revenue or earning growth. Such companies may be attractive to value investors or those who seek to benefit from the long-term potential of the company. In terms of health, ARISTA NETWORKS has a score of 10/10 which means it is capable of paying off debts and funding future operations. It also has a strong position in terms of assets, growth, and profitability. However, it is weak in terms of dividend distribution. Overall, ARISTA NETWORKS is a solid choice for investors looking for long-term potential. Its strong competitive advantage and financial health make it a viable option for those looking to benefit from the growth of the company. Investors should however be aware that its dividend distribution is not as strong as its other metrics. More…
VI 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 (ANET) has had a volatile week on the stock market, rising on Wednesday but failing to keep up with the broader market performance. Investment analysts are taking a mixed view on the company, with some viewing the stock as undervalued and others viewing it as overvalued. Despite the mixed sentiment, ANET is still seen as a viable investment opportunity due to its strong presence in the data center market and its expanding product portfolio. Investors should continue to monitor ANET’s performance and upcoming announcements as they consider whether to invest in the company.
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