Why These 15 Data Center Stocks Are Plunging In 2025

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9. Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders In Q4 2024: 78

Arista Networks Inc (NYSE:ANET) is a networking solutions company. It sells ethernet switches and software, and these are used primarily in data centers.

The stock is down significantly so far in 2025 due to concerns about declining sales to Meta Platforms. Meta accounted for 20% of the company’s revenue a year ago. It now accounts for around 15%.

The company reported better-than-expected Q4 earnings and projected 17% revenue growth for 2025, but investor sentiment was impacted negatively as Meta reduced its orders.

Moreover, there has been some insider selling. Arista’s CTO sold $95 million worth of stock in January 2025.

Arista Networks also provided cautious guidance for 2025 late last year. It projected $8 billion in revenue vs. $8.12 billion expected. The market saw this as bearish.

The consensus price target of $114 implies 36.39% upside.

ANET stock is down 24.45% year-to-date.

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