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Why Arista Networks Stock was Narrow Friday



What Happened

Shares of Computer Networks Stock Arista Networks (NYSE: ANET) took a hit on Friday, falling 24.2% before the market closed.

The stock withdrew despite solid results in the third quarter. The culprit for bearish against the stock on Friday was management's fourth-quarter guidance.

  A blackboard sketch of a falling line diagram.

Image Source: Getty Images.

So what

Arista Networks reported revenue of $ 654 million, up 7.6% from the previous year. Adjusted earnings per share for the tech stock was $ 2.69, up from $ 2.1

1 a year earlier.

"In Q3 2019, we continued to see the adoption of our cloud network technology in more diverse environments," said Arista CEO Jayshree Ullal in the revenue release. But Ullal said the company expects "a sudden softening in the fourth quarter with a specific cloud titan customer …"

Now what

Analysts believe "cloud titan" is Facebook . In Arista's notice, Ullal said that one of the largest customers recently informed Arista that it would not follow up on large orders Arista was expecting.

"Of course, this kind of volatility has a sudden and serious impact on our Q4 guidance," Ullal said during the interview.

Arista advised for fourth quarter revenue between $ 540 million and $ 560 million. Analysts expected revenue for the period to be $ 686 million.


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