ARISTA NETWORKS INC (ANET)

Arista Networks Inc. is a top company that builds high-speed networking for businesses that rely on cloud computing, artificial intelligence (AI), and data centers. Their products help companies move large amounts of data quickly and securely between devices, cloud platforms, and corporate networks. Their systems are designed for speed, reliability, and automation, meaning less downtime and less manual work for IT teams. They use cutting-edge technology to provide cost-effective, high performance networking solutions.

Their technology is in high demand as AI, cloud computing, and big data continue to grow. They have been profitable and generating cash since 2010, showing strong financial stability.

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Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Networking Hardware (Switches & Routers): Arista sells high-speed Ethernet switches and routers, which are essential for moving massive amounts of data in cloud computing, AI infrastructure, and large-scale enterprise networks. These products compete with Cisco but are favored for their speed, efficiency, and scalability.

• Software & Subscription Service: Arista sells proprietary software that helps companies manage and automate their networks efficiently. Many customers pay for software subscriptions, ensuring recurring revenue.

• Services & Support: Arista provides maintenance, consulting, and tech support for its networking products. These services generate consistent income from large enterprises and cloud companies.

• Cloud & AI Infrastructure Growth: As companies invest more in AI, cloud computing, and high-speed data centers, demand for Arista’s networking solutions keeps increasing. Major customers include Microsoft, Meta (Facebook), and Google, who rely on Arista to power their massive data centers.

Good Time to Buy?

At the time of writing, ANET is down 35% since its January 2025 52 Week All Time High of 133.57/share. To us, this company is a hidden gem. It’s been quietly crushing financially and taking a look at its stock performance below, it’s been consistently crushing that too. With tariffs dragging down the wider market in general, it has produced a lot of good deals. Great companies trading at cheap prices. ANET is worth your attention.

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