In early 2018, The Motley Fool's CEO, Tom Gardner, told Jayshree Ullal, the CEO of Arista Networks that he thought her company could grow its market cap from $8.5 billion at the time to $15 billion to $20 billion in five years.
He was wrong.
It didn't take nearly that long. Arista's market cap is around $37 billion today, and Stock Advisor members were able to get in early, with a recommendation all the way back in 2018.
In fact, across the Motley Fool's different services, we've recommended Arista Networks 16 different times, because we truly believe this company could become a "hall-of-fame" stock for investors.
And today, we wanted to share this rec with you.
Arista Networks is a pioneer in software-driven cloud networking solutions, and Arista's technology helps companies move vast quantities of data over the Internet at lightning speeds.
Compared to traditional hardware-based systems, Arista's solution is more reliable, more customizable, and easier to monitor and configure. Arista really does offer a better mousetrap, and customers know it. Arista's growing roster includes nearly all of the cloud's biggest names — Microsoft, Google, Amazon, Baidu and more.
With new ambitions that include networking driven by artificial intelligence and a cognitive campus model that works well for hybrid workspace models, Arista could continue to see impressive growth rates for years to come.
The company also boasts incredible leadership. Co-founder, Andy Bechtolsheim, is a Silicon Valley legend, founding Sun Microsystems and funding Google in its infancy. CEO, Jayshree Ullal, and co-founder and Chief Technology Officer, Kenneth Duda, are superstars in their own right.
The biggest risk we see is that while Arista has a large and diversified customer base, a relatively small number of large customers have historically accounted for a disproportionate share of its revenue. The loss of one or two key customers could hamper Arista's results. So far, that hasn't been a problem, but it's something that we'll keep an eye on.
With outstanding leadership, accelerating sales growth, rock-solid financials, strong engineering culture, and long-term focus, Arista Networks shows every sign of being a winning investment. We expect it to deliver excellent results for years to come.
We have a full write up on two more additional stocks we believe in so much, we're doubling down on them as well. You can get the picks when you sign up for a Stock Advisor membership today — for less than a dollor a week if you choose a two-year term.
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