We are investigating Arista Networks, Inc. (ANET) (“Arista” or the “Company”) for potential violations of the federal securities laws.
On October 31, 2019, Arista issued a press release announcing the Company’s financial results for the third quarter of 2019. While Arista’s earnings for the quarter exceeded expectations, the Company advised investors that it “exepct[ed] a sudden softening in Q4 with a specific cloud titan customer.” Comments by Arista’s officers during the Company’s quarterly earnings call seemed to confirm that the “titan customer” was Facebook, Inc. Multiple analysts downgraded Arista following the Company’s announcements. On this news, Arista’s stock price fell $59.27 per share, or 24.23%, to close at $185.30 per share on November 1, 2019.