Wed, May 7, 2025

Marvell's stock is falling. Here's why investors are spooked.

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Marvell Technology Inc.'s stock experienced a significant decline of up to 10% on Friday, following the release of their fiscal fourth-quarter earnings report. Despite the company reporting a 50% year-over-year revenue increase to $1.42 billion and adjusted earnings per share of 60 cents, surpassing Wall Street's expectations, investors were spooked by Marvell's guidance for the current quarter. The company forecasted revenue between $1.30 billion and $1.40 billion, which was below the consensus estimate of $1.46 billion, and projected adjusted earnings per share between 45 and 53 cents, also falling short of the expected 53 cents. This disappointing outlook, particularly in the context of a challenging economic environment and concerns about a potential slowdown in demand for semiconductors, led to the sharp drop in Marvell's stock price.

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