Arista Networks’ in-line quarterly revenue forecast disappoints investors, shares fall

Arista Networks forecast fourth-quarter revenue in line with analysts’ expectations on Tuesday, following stronger-than-expected revenue in the third quarter, sending its shares down 9% in extended trading.

Shares of the networking equipment provider had surged approximately 40% as of last close, fueled by a surge in AI investments, as both companies and investors continue to pour capital into the rapidly expanding sector.