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Arista Networks Shares Drop Despite Strong Growth Outlook
Arista Networks Shares Drop Despite Strong Growth Outlook
21
2
BTCCSquare news:
Shares of Arista Networks (ANET) fell 6.9% on Friday as investors reacted to the company's analyst day projections. While management forecast a robust 20% compounded annual growth rate through 2026, followed by mid-teens growth thereafter, the market response suggests expectations may have been higher.
The company's margin guidance of 60-64% gross and 43-45% operating margins appeared conservative compared to current performance. With the stock trading at over 55 times earnings, today's selloff reflects a recalibration of growth expectations in the context of soaring AI-related valuations across tech sectors.
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