Why Did Arista Networks (ANET) Plunge 4.96%? Mixed Earnings, Insider Sales

Generated by AI AgentAinvest Movers Radar
Wednesday, May 7, 2025 4:45 am ET1min read

On May 7, 2025,

experienced a 4.96% drop in pre-market trading, reflecting investor sentiment and market dynamics.

Arista Networks reported its first-quarter earnings, revealing a mixed performance. The company's earnings per share of 65 cents exceeded analyst estimates of 60 cents, but its revenue of $2 billion fell short of the expected $2.02 billion. The non-GAAP gross margin remained stable at 64.1%, slightly down from 64.2% in the previous quarter. CEO Jayshree Ullal highlighted the company's growth and profitability, driven by AI, cloud, and enterprise customers, despite uncertainties around tariffs.

Arista Networks also disclosed several insider trading activities. Notably, director Giancarlo Charles H sold 6,400 shares on May 1, 2025, and 1,600 shares on the same day. Other directors, including Kelly Bodnar and Kenneth Duda, also engaged in significant sell transactions during April 2025. These insider sales could indicate a cautious outlook among company insiders, potentially influencing investor confidence and contributing to the stock's recent decline.

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