If You Invested $1000 in Arista Networks a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.What if you'd invested in Arista Networks (ANET) ten years ago? It may not have been easy to hold on to ANET for all that time, but if you did, how much would your investment be worth today?Arista Networks' Business In-DepthWith that in mind, let's take a look at Arista Networks' main business drivers. Santa Clara, CA-based Arista Networks, Inc. is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next generation data center networks.Arista uses multiple silicon architectures across its products. At the core of the company’s cloud networking solutions is the Linux-based Extensible Operating System (EOS), which was architected to be fully programmable and highly modular.EOS supports leading cloud and virtualization solutions, including Microsoft System Center, OpenStack and other cloud management frameworks. The company co-authored the Virtual Extensible LAN (VXLAN) protocol specification with VMware and was the first to demonstrate VXLAN integration. It has now expanded VXLAN routing and integration.In 2015, Arista introduced CloudVision, a network-wide approach for workload orchestration and workflow automation delivering a turnkey solution for cloud networking. In 2019, Arista introduced 10 new 400G platforms. In the Leaf/Spine High Network Radix category, it now offers two new fixed 32 port 400G switches and a 128 port 100G/32 port 400G modular switch. For the Universal Leaf and Spine category of switching, the company introduced R3 series 100G and 400G products supporting up to 2.5M routes on its 7280R3 series fixed and 7500R3 series modular platforms.Arista introduced a modular family called the 7800R3, a high density 100G and 400G platform supporting up to 460 Tbps of system throughput. Also, it launched the 720XP Series of fixed Power over Ethernet (PoE) leaf switches with 60W PoE, enabling it to offer a complete end-to-end solution for cognitive campus Ethernet as well as the introduction of WiFi-6 wireless Access Points (APs).The company serves five verticals namely – cloud titans (customers that deploy more than one million servers), cloud specialty providers, service providers, financial services and rest of enterprise. Arista’s customers include six of the largest cloud service providers based on annual revenues. In 2023, total revenues were $5.86 billion.Bottom LineWhile anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Arista Networks ten years ago, you're probably feeling pretty good about your investment today.According to our calculations, a $1000 investment made in December 2014 would be worth $25,381.01, or a 2,438.10% gain, as of December 9, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.Compare this to the S&P 500's rally of 193.45% and gold's return of 105.56% over the same time frame.Analysts are forecasting more upside for ANET too. Arista continues to benefit from the expanding cloud networking market, driven by strong demand for scalable infrastructure. It offers one of the broadest ranges of data center and campus Gigabit Ethernet switches and routers in the industry. The versatility of Arista’s unified software stack across various use cases, including WAN routing, campus, and data center infrastructure, sets it apart from its competitors. Healthy growth in gross margin, backed by supply chain discipline, is a positive. However, Arista continues to derive a substantial portion of its revenue from a limited number of large customers. Any change in the demand patterns of these clients can significantly affect the top line. Intensifying competition in the data center networking market is a headwind. Increasing operating costs weigh on margins. Shares have gained 8.13% over the past four weeks and there have been 7 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. 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