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A good opportunity or a structural trap?

Arista Network’s stock plunged by c.24% after it announced its 3Q19 results. We took the opportunity to enter a small position in the counter. The counter has been on our radar since it was first recommended by Motley Fools US back in Sep 2017.  We detailed why we are small buyers in the stock below.

Despite being on our radar for a while, there has not been an opportune time to take a stake in this technology innovator that has been steadily taking market share away from the 800-pound gorilla in the room by the name of Cisco Systems due to its cloud-native architecture. Other key competitors include Juniper Networks and Extreme Networks.

Source: Company

For those who are unfamiliar with Arista Network, the company is a manufacturer of networking hardware, one that designs and sells