Is Arista Networks (ANET) a Worthy Investment?

Giverny Capital, an investment management company, recently published its fourth-quarter investor letter in 2022. A copy of the same can be downloaded here. The model portfolio of the firm appreciated 8.49%, net of fees in the fourth quarter compared to a 7.56% return for the Standard & Poor’s 500 Index. For 2022, the fund delivered a -22.65% return compared to a -18.11% return for the Index. Oil and energy was the strongest sector in the year increased by 65%. In addition, you can check the top 5 holdings of the fund to see its best picks for 2022.

Giverny Capital highlighted stocks like Arista Networks, Inc. (NYSE:ANET) in its Q4 2022 investor letter. Headquartered in Santa Clara, California, Arista Networks, Inc. (NYSE:ANET) is a cloud networking solutions provider. On January 26, 2023, Arista Networks, Inc. (NYSE:ANET) stock closed at $123.99 per share. One-month return of Arista Networks, Inc. (NYSE:ANET) was 2.18%, and its shares gained 3.16% of their value over the last 52 weeks. Arista Networks, Inc. (NYSE:ANET) has a market capitalization of $38.102 billion.

Giverny Capital made the following comment about Arista Networks, Inc. (NYSE:ANET) in its Q4 2022 investor letter:

“Arista Networks, Inc. (NYSE:ANET) finished the year as our fourth-largest holding. Arista lost 15.6% of its value in 2022 even as profitability rose on the order of 60% for the year. Arista supplies routers and switches to run so-called hyperscale cloud computing operations and large corporate data centers. I believe its products, including a software operating system that helps customers manage rapidly growing data centers, are best in class. Arista benefits from powerful demand trends, as the world moves away from mainframe computers and to the cloud, and large companies need to support “work from everywhere” connectivity. Arista grew sales by about 35% in 2022 and should grow 25% or so in 2023. I believe it is worth a considerable premium to the Index.”

Arista Networks, Inc. (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Arista Networks, Inc. (NYSE:ANET) at the end of the third quarter, which was 48 in the previous quarter.

We discussed Arista Networks, Inc. (NYSE:ANET) in another article and shared the best debt free stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.