Meta Platforms Just Caused This Crucial Artificial Intelligence (AI) Stock to Plummet. Should You Buy the Dip?

When one or two customers contribute a lot of revenue to a single business, it can be problematic. The supplier must maintain great relationships and maybe even give some concessions to these large clients; otherwise, the business might suffer.This is what happened just last week with Meta Platforms (NASDAQ: META) and Arista Networks (NYSE: ANET). Meta, formerly Arista's biggest customer, pulled back on its spending in 2024. This news caused investors to sell the stock off hard, and it now sits around 25% below its all-time highs. That's a massive reaction, but is it overblown?Arista Networks supplies its clients with data center networking solutions. Basically, any company that needs to send information from one data center to another is a potential client of Arista. While there are many businesses with data centers scattered across the globe, there are few that can match the scale of the various tech giants. As a result, it shouldn't surprise investors that a large chunk of revenue comes from a small client base. This is no different than GPU maker Nvidia (NASDAQ: NVDA), as it has multiple companies that each make up over 10% of its total revenue. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool