With Arista Networks Stock Sliding, Have You Assessed The Risk?
Arista Networks (ANET) stock is down 23.1% in 21 trading days. The recent slide reflects renewed concerns around moderating revenue growth and the lagging impact of hyperscaler AI spending, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Arista Networks stands today.
- Size: Arista Networks is a $148 Bil company with $8.4 Bil in revenue currently trading at $117.43.
- Fundamentals: Last 12 month revenue growth of 27.8% and operating margin of 42.9%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.56
- Valuation: Arista Networks stock is currently trading at P/E multiple of 44.0 and P/EBIT multiple of 40.8
- Has returned (median) 71.7% within a year following sharp dips since 2010. See ANET Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside Very High valuation – making the stock Attractive but Volatile. For details, see Buy or Sell ANET Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ANET stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ANET stock falls another 20-30% to $82 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- ANET stock fell 38.4% from a high of $36.71 on 27 December 2021 to $22.61 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 March 2023
- Since then, the stock increased to a high of $162.03 on 29 October 2025 , and currently trades at $117.43
| ANET | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -38.4% | -25.4% |
| Time to Full Recovery | 265 days | 464 days |
2020 Covid Pandemic
- ANET stock fell 34.0% from a high of $14.88 on 24 January 2020 to $9.81 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 July 2020
| ANET | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.0% | -33.9% |
| Time to Full Recovery | 129 days | 148 days |
2018 Correction
- ANET stock fell 43.6% from a high of $20.53 on 16 April 2019 to $11.58 on 1 November 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 May 2021
| ANET | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -43.6% | -19.8% |
| Time to Full Recovery | 566 days | 120 days |
Feeling jittery about ANET stock? Consider portfolio approach.
Smart Investing Begins With Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.