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- 1 MRVL stock price: The company’s stock has fallen after some disappointing financial results.
- 2 The Management has given optimistic forecast for the next quarter.
- 3 The bulls are fighting to reclaim the support level, see the price prediction below.
Delaware-based Tech company, Marvell Technology, Inc. (NASDAQ: MRVL) provides semiconductor solutions. The company majorly caters to data infrastructure, including computing, networking, storage, and custom solutions. It designs, develops, and sells integrated circuits.
The Financial Outlook of the Latest Quarter
Since the NFTs have dropped, stocks of semiconductor-related companies are high in demand and so is the market. Marvell reported its financial results for the 2nd quarter of the 2024 fiscal year. The organization’s net income for Q2 was $1.3 billion. It is a 12% downfall when compared with last year. Nonetheless, it is still on the higher side of the forecasted results
The Q2 gross profit came with a 33% decline from the previous year while the net income came as a negative $251 million with a negative growth of 6.7k%. The sales have declined significantly since 2022, which raises questions on the management.
The Optimistic Projections
However, the management is not only optimistic in their statements but also in their financial projections. Marvell’s CEO said that, Marvell delivered second-quarter fiscal 2024 revenue above the midpoint of guidance and that they are forecasting sequential revenue growth to accelerate in the third quarter.
The CEO has also stated that this growth is being driven primarily by AI and cloud infrastructure. He ended his statement, by indicating how the demand for AI applications continues to strengthen, driving their overall revenue.
The forecast that the management has presented, states that the revenue is expected to reach $1.4 billion. It will show a slight growth from the current one. Their margins after deducting COGS are forecasted to be near 48.0%. Furthermore, the organization has expressed that it will keep on re-investing heavily. It might bring the diluted per share to be a negative of $0.07 in the next quarter.
Technical Analysis and Prediction of the MRVL Stock Price
The current trading level for the MRVL stock price is $49.49. The immediate resistance is at $49, while the current demand zone is near $49.41. If the MRVL stock price breaks the current support, it will move towards a second support level of $39. The 50-day EMA is at $54, while the 150-day EMA is at $53. The RSI is near its oversold zone of 30, which may trigger a bullish reversal. The prediction for MRVL stock price is bullish and the target price is near its EMAs
Conclusion
Marvell Technology, Inc. (NASDAQ: MRVL) provides semiconductor solutions. The company posted negative growth in its recent quarters, which caused the MRVL stock price to fall. Management on the other hand is optimistic about the future growth aspects. The current trading stock price is near a support level but a short bullish action is predicted.
Technical Levels
- Support: $49, and $39
- Resistance: $57, and $65
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
