Stock Movers: Marvell Technology, Circle Internet Group, Constellation Brands
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Bloomberg
an hour ago
- Bloomberg
Stock Movers: DHL, Continental, BP
On this episode of Stock Movers: - DHL gained as much 6.7%, the most since April, after the logistics giant posted a strong second-quarter earnings beat against somewhat muted expectations, with analysts citing its cost control as a key positive and reason for the beat. - Continental shares were down as much as 2.8% after the German firm reported adjusted Ebit for the second quarter that missed the average analyst estimate, with brokers citing tariff and FX-led tire division weakness. Still, analysts noted margin improvement in the autos segment to be spun off in September. - BP stocks were up as much as 2.8% after the oil major reported adjusted net income for the second quarter that beat the average analyst estimate. The company also announced it will buy back $750 million of shares.
Yahoo
10 hours ago
- Yahoo
Is MRVL Stock a Buy, Sell or Hold at a P/E Multiple of 7.15X?
Marvell Technology MRVL is currently trading at a discounted valuation, with its forward 12-month price-to-earnings (P/E) ratio at 7.15X, which is lower than the Zacks Electronics - Semiconductors industry average of 8.63X. Given MRVL's discounted valuation, investors might be wondering: Is this an opportunity to buy, or are there deeper challenges that could keep the stock in check? MRVL Forward 12 Months (P/E) Valuation Chart Image Source: Zacks Investment Research Product Innovation Positions MRVL for Sustainable Growth What makes Marvell Technology's low P/E value more attractive is its robust business prospects. Due to the proliferation of AI and high performance computing among data centers and hyperscalers, MRVL is experiencing massive traction in custom Application Specific Integrated Circuits, Custom high bandwidth memory Compute Architecture, Co-Packaged Optics Platform and Multi-Die Packaging Platform products. As data centers perform a growing number of AI-related tasks, improvements in networking, interconnect, processing and storage capabilities, requiring high-performance semiconductor solutions become crucial. Marvell Technology is capitalizing on this opportunity with 800G PAM, 400ZR DCI, and 1.6T PAM digital signal processing products. This growth is evident in Marvell Technology's data center segment, which has taken the lead among all its segments with 76% year-over-year revenue growth in the first quarter of fiscal 2026. Marvell Technology also plans to expand its customer base among hyperscaler customers that seek to stand out, cut expenses and want to gain more control over their AI infrastructure. Marvell Technology has collaborated with NVIDIA and leveraged the latter's NVLink Fusion platform to build comprehensive rack-scale AI solutions to meet the needs of hyperscalers. Furthermore, the shift from copper to optical connectivity in AI infrastructure represents a massive growth opportunity for Marvell Technology's Co-Packaged Optics technology. Marvell Technology is also experiencing a recovery among its enterprise networking and carrier infrastructure segments on the back of the demand rebound. However, Marvell Technology is also facing some challenges. With all these factors at play, the Zacks Consensus Estimate for Marvell Technology's 2026 revenues is pegged at $8.2 billion, indicating year-over-year growth of 42.6%. The consensus mark for earnings is pegged at $2.79 per share, suggesting a whopping 77.7% year-over-year increase. Image Source: Zacks Investment Research Key Challenges Faced by Marvell Technology Marvell is experiencing traction in its AI-focused custom silicon semiconductor business, but the margin in this business is half the story, as the margin in this business is fundamentally lower, affecting MRVL's gross margin. MRVL's custom AI silicon, including XPUs, is lowering MRVL's gross margins due to higher costs associated with manufacturing these chips. The ongoing macroeconomic uncertainties, like the U.S. government's evolving stance toward China, from which MRVL gained about 43% of its fiscal 2025 total revenues, are also a concern for the company. Investors' skepticism has also been intensified by the fear of sanctions and persistent tariff threats to China, where Marvell Technology owns research and development facilities. Furthermore, softness in MRVL's consumer end market due to volatility in gaming demand and lumpy order patterns in the industrial business has added to investor concerns. Marvell Technology also faces intense competition from Broadcom AVGO and Advanced Micro Devices AMD in the AI accelerator space and Micron Technology MU in the HBM space. Advanced Micro Devices is a strong player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings and Instinct Accelerators that power numerous data centers. Advanced Micro Devices' reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers. Broadcom's advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs for AI accelerators. Micron Technology is also riding a powerful wave of demand for high-bandwidth memory (HBM) and DRAM products, especially as AI workloads surge. Micron Technology has made significant strides in AI-optimized memory solutions, with its HBM3E products gaining attention for their superior power efficiency and bandwidth. These factors have weighed on MRVL stock's performance. Stock Price Performance of MRVL Marvell Technology has underperformed the Zacks Electronics - Semiconductors industry in the year-to-date period by losing 32.6%. Marvell Technology YTD Performance Chart Image Source: Zacks Investment Research Conclusion: Hold MRVL Stock for Now Marvell Technology is facing several headwinds, including geopolitical tension, shrunken margins and growing competition across its end markets. However, the company has strong long-term fundamentals supported by its strong foothold in the data center and high-speed networking market. Considering all these factors, we suggest that investors should retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Bloomberg
12 hours ago
- Bloomberg
Stock Movers: Palantir, Spotify, Tyson
On this edition of Stock Movers: - Palantir (PLTR) reported a 48% increase in revenue for the second quarter to more than $1 billion, citing the 'astonishing impact' of artificial technology on its business. The data software company also raised its revenue outlook for the full year to $4.14 billion to $4.15 billion, exceeding analysts' prior expectation of $3.91 billion. The shares gained in extended trading after closing at $160.66 in New York. Denver-based Palantir has seen its stock price surge more than 500% over the past year — buoyed by high expectations from investors, growth in demand for AI tools and a deep reach into both the private and public sectors. - Spotify (SPOT) shares rose after the company announced it's raising premium subscription prices across many markets outside the US. The Swedish music streaming company is updating prices across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region, according to a statement on Monday. Over the next month, customers will receive an email outlining the new price plan. Subscription prices vary by country, but the statement included a sample email describing a price increase of €1 per month to €11.99 ($13.87). - Tyson (TSN)'s top boss said a long-awaited push to rebuild the US cattle herd will begin 'in earnest' next year — though the meat producer doesn't expect to benefit before 2028. Signs that ranchers are starting to retain heifers for breeding are setting a stronger outlook for Tyson's money-losing beef business, even as it will take another couple of years for the move to translate into increased supplies of slaughter-weight animals, Chief Executive Officer Donnie King said on Monday. Rebuilding the US herd is essential for beef producers. For years, ranchers have slashed herd sizes due to high interest rates, expensive feed and persistent drought. That has created the worst shortage in decades, pushing cattle prices to record highs and squeezing profits as processors struggle to pass on higher costs to consumers. Shares rose during trading today.
