11/1/2019, 4:30 PM (Source: TeleTrader)
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Facebook blamed for bad Arista Q4 revenue guidance

Shares of computer networking company Arista Networks dropped more 25% on Friday after the company provided lower-than-expected fourth quarter revenue guidance.

Arista CEO Jayshree Ullal said on the conference call with analysts the main reason for this "softening" is declining business from a cloud customer. Even though Arista hasn't exactly named the customer, many analysts blame Facebook Inc for its slowdown in orders, CNBC reported. Ullal confirmed Microsoft and Facebook both represent 10% of revenue this year but added Microsoft wasn't the source of the orders' decline.

Arista stocks were plunging 23.84% at 11:08 am ET.

Breaking the News / TF