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Every time you use AI or the cloud, huge amounts of data move in the background.
Arista Networks helps power the infrastructure that makes all of this possible.
Let’s dive into this rapidly growing high-quality company with exposure to AI.
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Arista Networks - General Information
👔 Company name: Arista Networks
✍️ ISIN: US0404132054
🔎 Ticker: ANET
📚 Type: Owner-Operator Stock
📈 Stock Price: $145.9
💵 Market cap: $179.9 billion
📊 Average daily volume: $1.2 billion
Onepager
Here’s a onepager with the essentials of Arista Networks:
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15-Step Approach
Now let’s use our 15-step approach to analyze the company.
At the end of this article, we’ll give Arista Networks a score on each of these 15 metrics. This results in a Total Quality Score.
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1. Do I understand the business model?
AI and the cloud are everywhere.
They shape our entire digital world.
And guess what? Arista Networks plays a key role in making it all happen.
Think of Arista as a pick-and-shovel business in the booming AI industry.
During the gold rush, the people who got rich weren’t the gold diggers... but the ones selling the shovels.
That’s exactly what Arista does. They deliver the technology that connects computers and servers.
Their advanced networking solutions move data at lightning speed. It’s the backbone every AI system and cloud network needs to run.
Who buys from Arista? The biggest names you know.
Microsoft, Meta, Google, Oracle,…
Arista makes money in two ways:
Selling Products (84.1% of sales): Most of the money comes from selling hardware like switches and routers. They also add powerful software called EOS and CloudVision.
Selling Services (15.9% of sales): Arista offers maintenance contracts and premium support to companies that depend on their gear every single day.
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2. Is management capable?
Jayshree V. Ullal has led Arista Networks as CEO since 2008, playing a major role in building the company into a leader in cloud networking.
Before joining Arista, she held senior executive positions at Cisco.
Under her leadership, Arista went public in 2014 and has grown into one of the most respected networking companies in the