How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Arista Networks (ANET) ten years ago? It may not have been easy to hold on to ANET for all that time, but if you did, how much would your investment be worth today?
Arista Networks' Business In-Depth
With that in mind, let's take a look at Arista Networks' main business drivers.
Santa Clara, CA-based Arista Networks, Inc. is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next generation data center networks.
Arista uses multiple silicon architectures across its products. At the core of the company’s cloud networking solutions is the Linux-based Extensible Operating System (EOS), which was architected to be fully programmable and highly modular.
EOS supports leading cloud and virtualization solutions, including Microsoft System Center, OpenStack and other cloud management frameworks. The company co-authored the Virtual Extensible LAN (VXLAN) protocol specification with VMware and was the first to demonstrate VXLAN integration. Moreover, it has now expanded VXLAN routing and integration.
In 2015, Arista introduced CloudVision, a network-wide approach for workload orchestration and workflow automation delivering a turnkey solution for cloud networking. In 2019, Arista introduced 10 new 400G platforms. In the Leaf/Spine High Network Radix category, it offers two new fixed 32 port 400G switches, and a 128 port 100G/32 port 400G modular switch. For the Universal Leaf and Spine category of switching, the company introduced R3 series 100G and 400G products supporting up to 2.5M routes on its 7280R3 series fixed and 7500R3 series modular platforms.
Arista introduced a modular family called the 7800R3, a high density 100G and 400G platform supporting up to 460 Tbps of system throughput. Also, it launched the 720XP Series of fixed Power over Ethernet (PoE) leaf switches with 60W PoE, enabling it to offer a complete end-to-end solution for cognitive campus Ethernet as well as the introduction of WiFi-6 wireless Access Points (APs).
The company serves five verticals namely – cloud titans (customers that deploy more than one million servers), cloud specialty providers, service providers, financial services and rest of enterprise. Arista’s customers include six of the largest cloud service providers based on annual revenues. In 2023, total revenues were $5.86 billion.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Arista Networks ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2014 would be worth $20,429.68, or a 1,942.97% gain, as of August 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 183.53% and the price of gold increased 80.83% over the same time frame in comparison.
Analysts are forecasting more upside for ANET too.
Arista reported healthy second-quarter results, with the top and bottom lines soaring year over year, driven by robust demand trends. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength ensured top-line expansion. Arista provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance along with programmability that enables seamless integration with third-party applications for network management, automation and orchestration. However, high concentration risk is a headwind. A rise in headcount, new product introduction costs and higher variable compensation expenditures are straining margins.
Shares have gained 7.21% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.7 Best Stocks for the Next 30 Days
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
