Arista Networks (NYSE:ANET) was in the spotlight Wednesday after delivering fourth-quarter results and 2025 guidance that drew praise from Wall Street, thanks in part to the ongoing AI-driven spending boom.

• Warning! GuruFocus has detected 2 Warning Sign with ANET.

However, despite the positive sentiment, Arista's stock took a hit in premarket trading. As of 8:13 AM ET, shares were down 5.11% to $105.38, a drop of $5.68. Other networking stocks, including Cisco (NASDAQ:CSCO) and Juniper Networks (NYSE:JNPR), saw only minor moves.

Evercore ISI analyst Amit Daryanani maintained confidence in Arista, noting that while Meta's (NASDAQ:META) revenue contribution declined in 2024 due to prior capital expenditure cuts, Arista still expects Meta to remain a 10%+ customer in 2025. He also pointed out that the last time Meta's revenue dropped, it was followed by two years of strong growth, suggesting a similar trend could play out.

However, he acknowledged that bears might see this as a sign of share losses at Meta, similar to concerns raised back in 2020. Daryanani kept his Outperform rating and a $130 price target on Arista.

Morgan Stanley's Meta Marshall also weighed in, describing the quarter as "pretty clean" despite not being perfect. With the market growing cautious about AI market share, she believes 20% year-over-year growth in cloud revenue for 2024 will help ease concerns, especially with an increase in deferred revenue balance and strong 2025 guidance.

Marshall kept her Overweight rating with a $118 price target and said she would be a buyer on any weakness following the earnings report, arguing that Arista's strong software quality and a $70 billion market opportunity justify its premium valuation.