Arista Networks (ANET) stock just fell 5%. Here's why

October 25, 2023 4:45 PM EDT

Shares of Arista Networks (NASDAQ: ANET) 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: META).

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: NVDA) 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 and Meta Platforms account for more than 10% of Arista’s revenues in 2023.

By Senad Karaahmetovic

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Senad Karaahmetovic