Why Arista Networks Stock Gained 10% Last Month
Shares of network company Arista Networks (NYSE: ANET) gained 10.1% in February, according to data provided by S&P Global Market Intelligence. The company reported financial results that were universally celebrated by Wall Street. And the stock may even be riding on the coattails of the most buzz-worthy subject on the stock market right now, contributing to its market-beating performance during the month.
On Feb. 13, Arista Networks reported financial results for the fourth quarter of 2022, capping off a great year. The company generated nearly $4.4 billion in full-year revenue, which was a 49% year-over-year increase. This was a massive acceleration from its 27% revenue growth in 2021.
Spending from the cloud titans, specifically Microsoft and Meta Platforms, drove these strong results for Arista Networks. The company's products are crucial for IT infrastructure, which has only become more important as everything becomes more data-intensive. And this led to the cloud titans more than doubling their spend in 2022 and accounting for almost half of Arista Networks' revenue.
Source Fool.com
