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No. of Recommendations: 7
For the discussion of the next Netflix...Arista does not qualify for that conversation.

Since I'm the one who posted with that subject a few days ago, I feel the need to qualify my statement. I agree 100% that ANET and NFLX are completely different beasts in completely different markets which have (or should) completely different sets of expectations about them, their growth, etc.

What I meant by saying ANET could be the next NFLX is that NFLX, for me, was all about the team running the company bringing a product I could know and absolutely love and could see "everyone else just like me" wanting to buy and use their product. In the case of NFLX, there are potentially 7.99B other people "just like me" who could pay for their product (slight exageration, but what's a few billion between Fools?)

With ANET, again, it's a company run by a team that I know, love, and respect, have a decent knowledge of their past(albeit not as well as I know Reed's history), and a product that I would just absolutely love to use based on what I know of their design. There are a lot of other people like me out there who run data centers, play in the cloud, and could really wrap their heads around SDN with a product built on top of a basic, off-the-shelf Linux kernel. Granted, that number of people is very small compared to Netflix's TAM. But I think that's off-set by the price difference for ANET's products.

So really, that claim was not at all that ANET could scale like NFLX. But rather, there are a lot of similarities for me about how the companies came to be, the teams that lead them, and their passion for building something they truly believe in with tremendous passion. Not to mention the amount of skin in the game each one has.

Of the companies we follow, SHOP is the one that appears to best qualify as the next "Netflix".

By your metrics, I absolutely agree. Interestingly, my metrics apply here as well, given how SHOP even came to be! I am very interested in, but not yet invested in SHOP. So I'm very eager to learn more about them through continued discussions here!

I apologize for my exuberance over ANET and confusing statement..
--
Paul
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