Would You Still Hold Arista Networks Stock If It Fell Another 30%?
Arista Networks (ANET) stock is down 10.0% in 5 trading days. The recent slide reflects renewed concerns around NVIDIA competition and deferred AI networking revenue, 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 $155 Bil company with $8.4 Bil in revenue currently trading at $123.42.
- 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 46.3 and P/EBIT multiple of 42.9
- 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 $86 – 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 $123.42
| 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 |
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