Arista Networks, Inc.

Arista Networks performed well in the last quarter with its cloud networking and data centre solutions helping the company report an all-around beat. The management believes their revenue for the entire year will come from two extremely outstanding clients, Microsoft and Meta. From the leaf switches at the top of the track to the regional spine and data centre spine to the LAN and cloud edge layers all over the world, Arista is installed in Microsoft’s network at every tier. Together, they developed the DCI layer, which is now the industry standard and incorporates encryption and long-reach pluggable optics. Furthermore, they have a close relationship with Meta and have contributed to the development of their network from the beginning. Among major updates, the company went on to acquire Pluribus Networks, developers of unified cloud networking technology. The acquisition appears to be highly synergistic in nature. We give their stock a ‘Hold’ rating with a revised target price.