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Arista Networks Acknowledges Possibility of Double Ordering

Though visibility is better than usual, cloud networking firm admits its line of sight may not be 20/20.

February 22, 2022

With Microsoft (MSFT) its top “cloud titan” customer and Facebook (FB) soon to become a ten-percent customer, shares of Arista Networks (ANET), a manufacturer of cloud networking gear, have returned more than 61% in the last year. On its fourth quarter earnings call, CEO Jayshree Ullal provided investors with reason for optimism outside the company’s largest tech customers:

“I just want to clarify that independent of the cloud titan CapEx spend, I believe we can enjoy a double-digit growth for quite some time to come in the non-cloud titan space. So I just want to make sure you understand that independent of this extreme enthusiasm and excitement era we're in, Arista has a foundation to keep growing double digits for multiple years to come.”

Ulall founded Arista after defecting from Cisco, which some observers say took share from Arista in the fourth quarter. Though skepticism abounds regarding Arista’s double-digit growth forecasts, the company acknowledged in its latest 10-K what analysts and investors have long suspected elevated demand levels:

“...end customers may be placing orders in advance of demand to ensure supply. End customers may decide to delay or cancel such orders if economic conditions worsen.”


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