Marvell Technology Reports Solid Earnings. Investors Seem Disappointed.
Marvell Technology's earnings results and financial guidance were slightly above expectations, but investors were disappointed due to the stock's previous strong performance.
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Posted 8/24/2023, 8:46:00 PM
barrons.com
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Investors were disappointed by Marvell Technology's lack of a beat-and-raise, but analysts still see potential in the stock due to the growth of artificial intelligence.
Chipmaker Marvell Technology exceeded Wall Street's expectations for its fiscal second quarter and provided a steady outlook for the current period, but its stock fell in after-hours trading.
Marvell Technology Group's shares fell despite surpassing Wall Street's expectations, Affirm's stock jumped after reporting strong Q4 results, Hawaiian Electric faced a 20% drop in shares due to a lawsuit, Nordstrom lost despite exceeding earnings expectations, Workday's shares rose following better-than-expected Q2 results, Intuit experienced a slight dip despite beating quarterly expectations, Ulta Beauty's stock rose after reporting positive Q2 results and raising its full-year forecast, Gap's shares gained despite mixed quarterly results, AMC Entertainment's shares rose ahead of an anticipated stock conversion, and Netflix's stock increased after a positive analyst upgrade.
Marvell Technology's fiscal second-quarter results and third-quarter guidance met expectations, with a significant increase in artificial intelligence revenue growth, but delays in recoveries for data center storage and enterprise networking businesses; overall, the company remains well positioned in data center infrastructure and is undervalued.
Investors were disappointed as early gains in stock markets reversed, with the Nasdaq Composite leading the downward trend, and stocks like Marvell Technology and Nordstrom losing ground due to their respective quarterly financial reports.
Marvell Technology's stock fell nearly 9% after reporting data-center sales that fell short of Nvidia's impressive results, despite beating earnings expectations and offering an in-line forecast.
The Relative Strength Rating for Marvell Technology stock has increased from 77 to 83, indicating strong market leadership.
Adobe reported better-than-expected earnings and guidance, fueled by the success of its artificial intelligence technology, but the stock is still falling.