Core Viewpoint - The article discusses a previous update on Arista Networks Inc. (ANET), reiterating a sell rating and suggesting that a reality check may be imminent for the company [1] Company Summary - Arista Networks Inc. is highlighted as a focus of the analysis, with a specific mention of a sell rating provided in a prior article [1] Analyst Background - The analyst has a strong focus on the tech sector and holds a Bachelor of Commerce Degree with Distinction, majoring in Finance [1] - The analyst is a lifetime member of the Beta Gamma Sigma International Business Honor Society, emphasizing core values of Excellence, Integrity, Transparency, and Respect [1]

Core Viewpoint - The article reiterates a sell rating for Arista Networks Inc. (ANET) and suggests that a reality check may be imminent for the company [1]. Summary by Relevant Sections - **Company Performance**: The analyst previously provided an update on Arista Networks in September, indicating concerns about the company's future performance [1]. - **Investment Focus**: The analysis is rooted in a strong focus on the tech sector, highlighting the importance of thorough research and analysis in investment decisions [1]. - **Analyst Background**: The analyst has a Bachelor of Commerce Degree with Distinction, majoring in Finance, and is a lifetime member of the Beta Gamma Sigma International Business Honor Society, emphasizing a commitment to excellence and integrity in investment analysis [1].

Core Insights - The article emphasizes the author's unique insights and knowledge in stock analysis, aiming to provide contrasting views on their portfolio [1] Group 1 - The analyst expresses a beneficial long position in shares of AVGO and NVDA, indicating confidence in these stocks [2] - The analysis is intended for informational purposes, highlighting the importance of conducting personal research before investing [3] - The article clarifies that past performance does not guarantee future results, underscoring the inherent risks in trading [4]

Core Insights - Corning Incorporated (GLW) and Arista Networks, Inc. (ANET) are positioned to benefit from the growth in AI data centers, with Corning being a leader in glass substrate technology and Arista excelling in Ethernet switches and routers [1][2][3] Corning (GLW) - Corning is experiencing improved demand and commercialization of innovations, particularly in fiber optic solutions, driven by the increasing use of mobile devices and cloud computing [4][5] - The company has reorganized its operating structure into five Market-Access Platforms, enhancing efficiency and creating synergies across different markets [6] - However, Corning faces challenges due to limited end market diversification in its Display and Optical segments, which are heavily reliant on consumer spending [7] - The Zacks Consensus Estimate for Corning's 2025 sales indicates a year-over-year rise of 12.3%, with EPS growth projected at 27.6% [12] - Corning's stock has surged 69.2% over the past year, outperforming the industry [14] - The price/sales ratio for Corning is 3.88, significantly lower than Arista's 14.93, indicating a more attractive valuation [16] - Corning holds a Zacks Rank 2 (Buy), suggesting it is a favorable investment option [17][18] Arista Networks (ANET) - Arista is a leader in 100-gigabit Ethernet switches and is gaining traction in higher-performance switching products, supported by its Arista 2.0 strategy [8][10] - The company aims to invest in core businesses, emphasize software-as-a-service, and enter adjacent markets to broaden its customer base [10] - Despite increased demand, Arista is facing high operating costs, with total operating expenses rising 13.8% to $452.4 million in Q2 2025 [11] - The Zacks Consensus Estimate for Arista's fiscal 2025 sales suggests a year-over-year growth of 26.7%, with EPS growth projected at 26.4% [12] - Arista's stock has gained 29.4% over the past year [14] - Arista carries a Zacks Rank 3 (Hold), indicating a more cautious investment outlook compared to Corning [17]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Summary of Arista Networks FY Conference Call (November 18, 2025) Company Overview - **Company**: Arista Networks (NYSE: ANET) - **Industry**: Networking and Cloud Solutions Key Points Financial Performance and Guidance - Arista reported strong results for Q3, with deferred revenue growing by 87% [5] - The company provided a revenue guidance of 20% growth for FY2026, which is considered bold and optimistic [4][5] - The revenue guide for AI-related products is set at $2.75 billion for 2026, up from $1.5 billion for 2025, indicating significant growth expectations [24][30] Supply Chain and Product Availability - There are no specific supply chain constraints affecting Arista's revenue, as the company has made purchase commitments to ensure supply for 2025 and 2026 [4][73] - The company has a total of $7 billion in inventory and purchase commitments, which helps mitigate supply risks [75] - The average time for product deployment has shifted from 6-12 months to 18-24 months for larger AI data center projects [7][8] AI and Networking Opportunities - The networking opportunity is expanding as AI deployments grow, with a focus on large-scale data center build-outs [11][12] - Arista's Total Addressable Market (TAM) for networking has increased to $105 billion, up from $70 billion the previous year [32] - The company is actively engaged in the ESUN initiative, which focuses on Ethernet Scale-Up Networks, promoting vendor diversity and supply chain resilience [38] Competitive Landscape - Arista has surpassed its main competitor in market share for front-end networks and is optimistic about capturing market share in back-end networks as well [51][52] - The company differentiates itself through its blue box strategy, which allows customers to use Arista hardware with their own software, providing flexibility and investment protection [42][45] Campus Market Strategy - Arista aims to increase its market share in the campus market from 5% to a more significant portion, targeting $1.25 billion in revenue [66][68] - The company is leveraging its VeloCloud acquisition to enhance its campus portfolio and is focused on new logo acquisition and land-and-expand strategies [67][69] Challenges and Considerations - The company acknowledges that while it has a strong outlook, it does not assume 100% success in its guidance, allowing for optionality in its forecasts [60] - Gross margin fluctuations are primarily driven by customer mix, with hyperscalers typically having different purchasing power compared to enterprise customers [63] Investor Insights - Key points that investors may not fully appreciate include the importance of deferred revenue in understanding growth, the differentiation between blue box and white box strategies, and the impact of industry-wide announcements on the company's performance [78][79] Conclusion Arista Networks is positioned for significant growth in the networking and AI sectors, with strong financial guidance and a proactive approach to supply chain management. The company is focused on expanding its market share in both the AI and campus markets while navigating competitive dynamics and potential challenges in the industry.

Core Viewpoint - The stock price of Arista Networks Inc (ANET) has decreased by 10%, but the bullish thesis on the company remains unchanged despite recent market volatility [1]. Company Summary - Arista Networks Inc (ANET) has experienced a significant drop in stock price, indicating potential market concerns or reactions to broader market conditions [1]. Market Context - The broader markets have seen a return of volatility in recent weeks, which may have contributed to the stock price decline of ANET [1].

Core Insights - Arista Networks (ANET) has not benefited from the current enthusiasm surrounding AI networking and connectivity companies, despite the overall market interest in AI technologies [1] Group 1: Company Overview - Arista Networks is positioned within the technology sector, specifically focusing on networking and connectivity solutions [1] Group 2: Analyst Background - The analysis is conducted by Uttam, a growth-oriented investment analyst with a focus on technology sectors such as semiconductors, artificial intelligence, and cloud software [1] - Uttam has prior experience in leading teams at major technology firms, including Apple and Google, which adds credibility to his insights [1]

Core Insights - Arista Networks (ANET) has not benefited from the current enthusiasm surrounding AI networking and connectivity companies, despite the overall market interest in AI technologies [1] Group 1: Company Overview - Arista Networks is positioned within the technology sector, specifically focusing on networking and connectivity solutions [1] - The company has been overlooked in the context of the AI bubble that has affected market sentiments this year [1] Group 2: Analyst Background - The analysis is conducted by Uttam, a growth-oriented investment analyst with a focus on technology sectors such as semiconductors, artificial intelligence, and cloud software [1] - Uttam has prior experience in leading teams at major technology firms like Apple and Google, enhancing the credibility of the research [1]

Core Viewpoint - Arista Networks Inc (NYSE:ANET) is recognized as a fundamentally strong stock, but Erste Group has downgraded its rating from "Buy" to "Hold" due to concerns over operating margins and stock valuation [1][2]. Financial Performance - In Q3 2025, Arista Networks reported approximately $2.31 billion in revenue, with software and services contributing around 18.7% of total revenue [3]. - Product revenue increased by $387.9 million, or 25.5%, compared to the same period in 2024, indicating strong demand for switching and routing platforms [3]. - The non-GAAP gross margin was reported at 65.2%, benefiting from a favorable product mix and inventory management [4]. - Non-GAAP net income reached $962.3 million, up from $769.0 million in Q3 2024, reflecting a 25% growth in non-GAAP EPS, showcasing healthy demand and effective execution of the strategic roadmap [4]. Strategic Initiatives - Arista Networks is developing a cross-vendor ecosystem to integrate AI networks with computing infrastructure, which is expected to drive revenue growth in the medium term, albeit at a slowing pace [1][2]. - The Etherlink portfolio is highlighted for its accelerated networking approach, providing a single point of network control for automation, security, traffic engineering, and telemetry [2].