Arista Networks is a computer networking company that primarily tackles problems in the cloud computing world. They are a growing company that’s a current stock price is not looking great. Recently Arista Networks Inc. tumbled in stock price worth due to a ‘cloud titan’.
Stock Market News – Arista Networks Surge and Downfall
This stock was once rising. In just a year Arista Networks Inc rose 47.5% this year and was predicted to keep on rising. Instead, just last week Arista Networks Inc hit a downfall that has made stock market players nervous. In just a few hours after a publication from the Wall Street consensus, the once flourishing company stock fell harshly.
“Cloud Titan” is to blame
According to experts from Arista, they were expecting a ‘speed bump’ due to the recent big buildup of cloud providers. Cloud computing is a growing field that companies worldwide are attempting to get into the field. Some of these bigger companies aren’t technology based.
The company also stated that they were expecting slow growth in the second quarter which was directed by an unnamed specific company.
Chief Executive Jayshree Ullal discussed with analysts about this situation by saying “In particular, one cloud titan has placed most orders on hold for Q2 2019,”.
Predictions of the ‘cloud titan’ include Microsoft
One prediction often spouted for being the ‘cloud titan’ is Microsoft. Within Microsoft is the Azure business which contributed to 10k of Arista’s revenue.
Investors and experts are left wondering who the ‘cloud titan’ is and why they are not being disclosed. Jayshree has not confirmed nor denied any company, including Microsoft as the ‘cloud titan’ that allowed for their stocks to tank viciously, after a great year of increase.
Analysts also looked into different reasons for the plunge, including new purchases or products put out and bought by Arista Networks. Although there are theories, none of them have confirmed. Source: marketwatch.com
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