Is Arista Networks Stock a Buy?
After several years of strong, double-digit revenue growth, Arista Networks (NYSE: ANET) posted a second consecutive quarter of revenue decline this week. And management forecasted a similar result next quarter. Yet the company remains a highly profitable network vendor that is exposed to the secular growth of cloud computing. Thus, at 31 times its anticipated full-year earnings, is Arista stock a buy?
Over the last decade, Arista has been developing a networking portfolio that filled the gap the dominating network giant Cisco Systems left after it failed to address cloud vendors' networking requirements.
In contrast with legacy, monolithic networking products that have been running enterprise networks since the previous century, Arista's solutions offer the scalability, performance, and flexibility cloud giants require to build and operate their huge networks.
Source Fool.com
