Arista Networks stock just fell 5%; Here’s why

Shares of Arista Networks (NYSE:) fell nearly 5% in after-hours trading on Wednesday although the company didn’t report results.

The reason for the sudden drop is lowered capex guidance by Meta Platforms (NASDAQ:).

Facebook’s parent company said it expects to record total expenses of $87-89 billion, lower than the prior forecast of $88-91 billion.

As a result, ANET stock fell 4.6%. Nvidia (NASDAQ:) shares also slipped, trading more than 1% lower in after-hours trading.

It was reported earlier this year that Meta spent more than $1.1 billion on Arista’s products in 2022. According to analysts, Microsoft (NASDAQ:) and Meta Platforms account for more than 10% of Arista’s revenues in 2023.