Arista Networks Shares Pop As Meta Boosts Capex Outlook

Arista Networks ANET shares are soaring today after Meta Platforms Inc META boosted its capital expenditure outlook in Q3 earnings yesterday, which included increased data center spending.

Meta expects 2022 CAPEX of $32 billion - $33 billion, versus previous guidance of $30 billion to $34 billion. 

Meta expects CAPEX for 2023 to be $34 billion - $39 billion, driven by investments in data centers, servers, and network infrastructure. 

Meta also factored in Reality Labs' expenses in its total expense guidance. 

Meta also noted that an increase in AI capacity is substantially driving all of its CAPEX growth in 2023. 

In 2019, Arista Networks, Inc collaborated with Meta-owned Facebook to launch a new cloud traffic platform.

In July, Needham highlighted that Arista's core customers, Microsoft Corp MSFT and Meta, were "spending aggressively to support their cloud infrastructures and longer-term plans." 

Arista Networks gained a share in the enterprise segment and has low exposure to the cautious international markets.

Price Action: ANET shares traded higher by 8.89% at $118.66 on the last check Thursday.