If You'd Invested $200 in Arista Networks Stock 5 Years Ago, Here's How Much You'd Have Today

Core Insights - Arista Networks has experienced significant stock price appreciation over the past five years, with a return of 422% compared to a mere 74% for the S&P 500 [2][3] - The company's revenue has surged by 157% since 2019, indicating strong sales growth that has contributed to the stock's performance [2] - The price-to-sales ratio for Arista has increased from 8.5 to 16.8, reflecting a nearly doubled market valuation for its sales [2] Performance Analysis - An investment of $200 in Arista stock five years ago would have grown to $1,043, showcasing the stock's impressive returns [2] - In contrast, a similar investment in the S&P 500 would have only yielded around $374, highlighting Arista's superior performance [2] - The stock's rapid growth followed a period of stagnation from 2018 to 2021, where the stock price remained flat before experiencing a significant increase [3] Market Dynamics - The surge in Arista's stock price is attributed to rising demand for high-performance computing stocks, particularly those linked to artificial intelligence [3] - The performance of Arista serves as a reminder that patient investors often reap the most rewards, as those who frequently traded the stock may have missed substantial gains [3]