Arista Networks (NYSE:ANET) is a technology-focused company that has been quietly making waves in the industry over the past couple of years. Founded in 2004 by former Cisco Systems executives Andy Bechtolsheim and Dave Cheriton, the Sunnyvale, California-based company is focused on building cutting-edge cloud networking solutions. In doing so, it has managed to become a profitable company and a quality tech stock, with plenty of room to grow.
Arista Networks focuses on providing high-performance, reliable cloud networking solutions to enterprise customers. Its flagship product, Arista Networks Elastic Cloud Network (ECN), provides cloud orchestration and automation. ECN automates the deployment and configuration of virtualized and physical network functions, allowing customers to quickly and easily set up their network environment. Arista also offers a suite of hardware platforms, such as its High Performance Network Interface card and its Converged Cloud Interconnect, which helps customers simplify and accelerate the adoption of cloud architecture.
Arista also produces network switches, routers, and software for storage. Its products are used by tech giants such as Amazon, Google, Microsoft, and Facebook, as well as other industry leaders. What’s more, the company has a very healthy balance sheet, and it has a strong track record of cash flow. This is especially important in the tech sector, where cash flow is essential to survive the ever-changing landscape.
Arista’s products are in demand, and the company is taking advantage of this demand. In its most recent fiscal year, it posted a profit of $169 million, with sales up 27% year-over-year. In addition, its share price has been steadily rising since the beginning of 2020, up more than 65%. This makes it an excellent stock pick for those looking for a tech stock with room to surge.
Arista Networks offers customers a reliable, easy-to-use network platform that helps them reduce operational costs, increase their network performance, and improve their security posture. Furthermore, with the company’s impressive track record of profitability and its solid management team, investors have plenty of reasons to believe in the long-term prospects of the stock. Therefore, investors should consider taking a closer look at Arista Networks, as it could be an attractive addition to a portfolio in the technology sector.