Arista Networks shares plummeted on Wednesday amid concerns about the company’s sales to a key customer, Meta. Despite this, several analysts remain bullish on the stock, expecting a boost from growing demand for Artificial Intelligence (AI). The company reported better-than-expected earnings in its fourth-quarter results, with revenue growth projected at 17% in 2025.
Analysts from Melius Research and Citi maintained their “buy” ratings, citing strong market prospects and significant AI upside. Morgan Stanley analysts also reiterated an “overweight” rating, citing the company’s high-quality software and a $70 billion market opportunity.
Despite the recent drop, Arista shares have still gained nearly two-thirds of their value over the past 12 months, closing at $103.92 on Wednesday. The company’s earnings call highlighted its confidence in future growth, with analysts praising the forecast as a positive sign for the company’s prospects.
Source: https://www.investopedia.com/why-analysts-are-bullish-on-arista-networks-despite-stock-drop-wednesday-11683060