What happened

Shares of Arista Networks (ANET -0.67%) fell on Monday, pulled down by a red day on the stock market. It seems investors quickly forgot all about the upbeat news the company had on Friday. As a result, the stock fell 6% for the day.

So what

On Thursday, Arista Networks reported full-year 2020 results that showed a return to growth. Full-year revenue was down almost 4% year over year, and its profit was down sharply. But fourth-quarter results reversed declines from earlier in the year. Q4 revenue was up 7% from the fourth quarter of 2019.

A frustrated person lays their head on a table with a down stock chart in the background.

Image source: Getty Images.

Analysts weighed in on Arista Networks on Friday, universally praising the company's progress. According to The Fly, nine research firms gave their thoughts on Arista Networks stock and all of them raised their price targets. Price targets range from $295 per share to $370 per share, giving shareholders something to celebrate.

Now what

These price targets represent between 1% and 27% upside from where Arista Networks stock finished on Monday. Given these bullish opinions, one would have expected the stock to rise today -- not fall. However, in the short term, the market can be fickle and unpredictable. It's why I wouldn't put too much stock in the increased price targets and why I wouldn't get too down with the stock's decline today. This is short-term noise.

If Arista Networks' business performs well in the coming quarters and years, it's likely the stock will rise long-term -- this is what shareholders should focus on. The company struggled in 2020 as some of its bigger customers pulled back on spending. But management is optimistic spending will pick up in 2021, and that's something for investors to watch in coming quarters.