The Shares of Arista Networks drops by 25% on weak guidance as the company cites softening business from a cloud customer
The shares of Arista Networks drops by 25% post data center switch maker offered poor quarterly revenue guidance that resulted in the decline of business from a cloud customer. However, this is an indispensable part that Arista hasn’t disclosed the name of the cloud customer in written yet. In a statement, the CEO of Arista Networks, Jayshree Ullal said, “While we expect a sudden softening in Q4 with a specific cloud titan customer, we are committed to a sustainable and strong foundation of long-term growth, innovation, and profitability.” It is expected that Microsoft and Facebook will represent 10% of revenue separately. In the second-quarter earnings report, the company asserted that Microsoft had represented 27% of revenue in the fiscal year of 2018.