What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) fell 6.3% in the afternoon session after the company reported underwhelming first quarter 2025 results: sales and earnings were roughly in line. Free cash flow margin also shrank, and full-year EPS guidance was mostly in line. Overall, this was a mixed quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Marvell Technology’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 7.8% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Marvell Technology is down 48% since the beginning of the year, and at $59 per share, it is trading 53.2% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $1,789.
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