What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) fell 18.5% in the afternoon session after the company reported weak fourth quarter 2024 results. its inventory levels materially increased and its EBITDA missed. Sales were up a solid 27% year over year, thanks to a monster 78% jump in its data center segment. But outside of that, things got a little rough. Enterprise networking and carrier infrastructure took a hit, which dragged down overall momentum. So while AI is giving the company a big boost, its more traditional infrastructure business faced some real headwinds. Overall, despite solid earnings, the quarter revealed a business still navigating uneven performance across its segments.
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What The Market Is Telling Us
Marvell Technology’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Marvell Technology and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 5.9% as the major indices tumbled after the Trump administration confirmed that the planned 25% tariffs on imports from Canada and Mexico, two of the largest trading partners of the United States, would proceed as planned. The news added to the market's growing unease, which had been building since the start of 2025. For Wall Street analysts, investors, and businesses, the announcement underscored the urgent need to plan ahead and factor the potential downside of the tariffs into their financial forecasts. Key concerns included rising production costs, which are often passed on to consumers, and the risk of inflation, further heightening economic uncertainty.
Marvell Technology is down 35.1% since the beginning of the year, and at $73.74 per share, it is trading 41.5% 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 $3,060.
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