Why You Should Buy Arista Networks After the Q4 2019 Outlook Warning
The wild ride continues for Arista Networks (NYSE: ANET). After surging some 50% higher in the first half of 2019, shares of the cloud networking provider have reversed course and are down 8% on the year as of this writing. As with everything tech hardware related as of late, investors have been digesting effects from the U.S.-China trade war, a slowing global economy, and a breather in new data center construction after several years of fast expansion from the biggest names in the business.
Adding to the pain was a dismal-looking forecast for the final quarter of 2019. As a result, this stock has gone from high-flyer to something resembling a value in quick fashion. The sell-off looks overdone, though, and now could be the time to start eyeing a purchase of this technology leader.
Recent stock declines are masking a business that is actually doing quite well. With three-quarters of 2019 now in the books, Arista is sitting atop another double-digit advance in spite of widespread weakness in new data center buildout among the "cloud titans" -- namely, Microsoft, Amazon, Alphabet, and Facebook.
Source Fool.com
