Arista Networks Stock To $166?

Arista Networks (ANET) stock has fallen 19% during the past month, and is currently trading at $127.22. Our multi-factor assessment suggests that it may be time to buy more shares of ANET stock. We have, overall, a positive view of the stock, and a price of $166 may not be out of reach. We believe there is nothing to fear in ANET stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $160 Bil in market cap, Arista Networks provides cloud networking solutions globally, along with post-contract services including technical support, hardware repair, parts replacement, bug fixes, patches, and upgrades.

[1] Valuation Looks Very High

This table highlights how ANET is valued vs broader market. For more details see: ANET Valuation Ratios

[2] Growth Is Very Strong

• Arista Networks has seen its top line grow at an average rate of 29.4% over the last 3 years
• Its revenues have grown 28% from $6.6 Bil to $8.4 Bil in the last 12 months
• Also, its quarterly revenues grew 27.5% to $2.3 Bil in the most recent quarter from $1.8 Bil a year ago.

This table highlights how ANET is growing vs broader market. For more details see: ANET Revenue Comparison

[3] Profitability Appears Very Strong

• ANET last 12 month operating income was $3.6 Bil representing operating margin of 42.9%
• With cash flow margin of 49.0%, it generated nearly $4.1 Bil in operating cash flow over this period
• For the same period, ANET generated nearly $3.4 Bil in net income, suggesting net margin of about 39.7%

This table highlights how ANET profitability vs broader market. For more details see: ANET Operating Income Comparison

[4] Financial Stability Looks Very Strong

• ANET Debt was $0.0 at the end of the most recent quarter, while its current Market Cap is $160 Bil. This implies Debt-to-Equity Ratio of 0.0%
• ANET Cash (including cash equivalents) makes up $10 Bil of $18 Bil in total Assets. This yields a Cash-to-Assets Ratio of 56.0%

[5] Downturn Resilience Is Strong

ANET has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

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 $127.22

 
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

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ANET Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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