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IamM's avatar

Hi Moritz,

Will miss your monthly updates for sure, but hopefully you will continue sharing your thought between the quarters.

Reading your X tread thread about Arista Network and their Q3 earnings, which just were announced, I started wondering why Arsita's stock is performing YTD better, than ZScaller or have the same YTD performance with Crowdstrike?! Arista is hardware/cyclical business, lower gross margins and slower growth compared to the other two.

Interested in your opinion on that.

Thanks,

Martin

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Moritz Drews's avatar

Hey Martin, I can't tell why stock prices move how they move in the short term (which is < 3 years), but Arista Networks has proven for years to generate profits, has low SBC, and is likely to grow double-digit revenue growth for years to come. I expect similar growth durability for Crowdstrike and Zscaler as well but that said, Arista Networks is in a much "healthier" state due to its strong profitability which the market seems to reward - especially in this environment.

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