Why Arista Networks Stock Declined in 2019
Shares of Arista Networks (NYSE: ANET) ultimately declined 3.5% in 2019, according to data from S&P Global Market Intelligence, as a streak of unfavorable quarterly reports left the tech stock badly lagging the S&P 500's 29% return.
That's not to say it was all bad; Arista started last year on a high note, roaring more than 60% higher through the middle of April -- including a 33% gain in February alone -- thanks largely to the company's better-than-expected fourth-quarter 2018 results in February.
The fun wouldn't last long, though. Arista stock plunged more than 20% in May after the company posted solid first-quarter results but followed with disappointing forward guidance that indicated top-line growth would decelerate from roughly 26% to around 15% to 17% in the second quarter. To blame, according to Arista management at the time, was a single "massive cloud titan customer" -- largely understood to be Facebook (NASDAQ: FB) -- that had temporarily placed most of its orders on hold.
Source Fool.com
