What's Next For Arista Networks Stock After 9% Plunge?

Core Viewpoint - Arista Networks (ANET) stock experienced an 8.9% decline following the company's analyst day, where management projected a 20% compounded annual sales growth from fiscal 2023 to fiscal 2026, which was perceived as underwhelming by investors after a 55% rally over the past year [1] Company Overview - Arista Networks is a cloud networking company that designs and sells multilayer network switches for large data centers and high-performance computing environments [3][5] - The company currently has a market capitalization of $175 billion and reported $8.0 billion in revenue, with a revenue growth of 26.0% over the last 12 months and an operating margin of 43.1% [6] Financial Metrics - The stock is currently trading at $139.39, with a P/E multiple of 53.9 and a P/EBIT multiple of 51.1 [6] - The company has a debt-to-equity ratio of 0.0 and a cash-to-assets ratio of 0.53, indicating strong liquidity [6] Historical Performance - ANET stock has shown resilience in past downturns, with a median return of 81.5% within a year following sharp dips since 2010 [6] - The stock fell 38.4% from a high of $36.71 on December 27, 2021, to $22.61 on June 16, 2022, compared to a 25.4% decline for the S&P 500, but fully recovered to its pre-crisis peak by March 8, 2023 [7] - During the COVID-19 pandemic, ANET stock fell 34.0% from a high of $14.88 on January 24, 2020, to $9.81 on March 16, 2020, but also fully recovered to its pre-crisis peak by July 23, 2020 [9]