Shares of Arista Networks (NYSE: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 (NASDAQ:MSFT) and Meta Platforms account for more than 10% of Arista’s revenues in 2023.