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Stock impact report

Arista Networks: A Wonderful Company At A Not-So-Fair Price [Seeking Alpha]

Arista Networks, Inc. (ANET) 
Last arista networks, inc. earnings: 2/13 04:05 pm Check Earnings Report
US:NASDAQ Investor Relations: investors.arista.com/home/default.aspx
Company Research Source: Seeking Alpha
This was possible mainly thanks to a strong financial performance, robust profitability, high growth, and a healthy balance sheet. The rise of artificial intelligence and the shift of IT to cloud and digital services is driving a megatrend in data networking, enhancing the business model of Arista. The main risks and challenges are customer concentration with cloud giants, margin pressure from large deals, competition (especially from Cisco and Nvidia), and market share erosion. ANET looks currently overvalued by ~10%, given the huge run-up it has experienced in the last few years and discounting a physiological decline in its future growth rate. nadla/iStock via Getty Images My Investment Thesis Arista Networks ( ANET ) has the characteristics for being considered a wonderful company: excellent capital allocation (ROC ttm of 30%), double-digit growth (CAGR in the last 10 years for revenue, net income, and FCF of ~26%, ~38%, and ~50%, respectively), high margins (~64% gro Show less Read more
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