FFIV - Arista Networks: Downgrading The Business On Valuation And Growth Concerns
2024-05-30 10:50:09 ET
Summary
- Arista Networks has experienced significant growth and strong financial performance, leading to a previous upgrade to a 'buy' rating.
- However, the stock is becoming more expensive and concerns about growth slowing down are emerging.
- The company's decision to buy back shares is seen as unwise, leading to a downgrade to a 'hold' rating.
One of the most important traits that makes for a good investor is acknowledging when you have made a mistake. Last October, for instance, I did just that when it came to a company called Arista Networks ( ANET ). For those not familiar with the institution, it focuses on providing customers with cloud networking capabilities, primarily through its Arista Extensible Operating System. The platform that the company has helps to establish workflow automation for its clients. It does this while providing tools and applications that help users in things like monitoring, detecting, and reporting on, network issues if and when they arise. It also provides security as part of its business as well....
Arista Networks: Downgrading The Business On Valuation And Growth Concerns