Marvell Technology Inc. rose about 2% in the first three days of March. The pertinent question is whether it can continue the climb. In February 2023, MRVL dropped by around 2.5% but managed to gain 2% in the first week of March. A possible reason could be the fallback of the decade-long Treasury yield, which concluded just a week before Thursday.
Marvell Technology (MRVL) provides data infrastructure and semiconductor solutions. It also offers computing, networking, storage and custom solutions. Along with its subsidiaries, the company develops and sells analog, mixed-signal and digital signal processing systems. They also offer a wide portfolio of Ethernet solutions, controllers, physical transceivers, network adaptors and switches.
The latest earnings was released on March 2, 2023 according to which the estimated revenue was $1.4 billion while the reported figure was $1.419 billion. This was a surprise of $18.865 million, a difference of 1.35%.
Reportedly, the year-to-year worldwide chip sale is down by 18.5%. The Semiconductor Industry Association (SIA) reported on March 3, 2023, that the global semiconductor industry sales in January were $41.3 billion, a correction of 5.2% compared to December 2022, which was $43.6 billion. Also, it dropped by 18.5%, contrasting with $50.7 billion in January 2022.
When writing, it was trading at $44.04 with a correction of 4.74%; previous close and open were at $46.23 and $41.38, respectively. The fifty-two-week range is – 24.42%. The market cap is $37.575 billion, while the volume is 38.28 million shares. The analyst’s price target is around $57.86, with a 31.45% upside.
The analyst rating is 2.88 for moderate buy, and short interest is healthy, with 2.40% of shares sold short. The dividend yield is 0.54%, and the profit margin is negative 2.76%. The operating margin is healthy at 6.07%. Revenue of Marvell Technology is $1.54 billion, with a jump of 26.92%. While revenue per share is $6.95, quarterly revenue growth is 5.60%. The net income is $13.30 million with a jump of 121.25%, and the EPS is $0.57 with a raise of 32.56%.
Thursday’s earnings created a positive environment, followed by massive trading volume. Although there is a gap-down, the buyers managed to bring the price closer to the moving average. If the positive sentiments continue and the price breaks the R1 at $49.30, it might jump by 18.20% to $58.54.
The last candle barely breaks through the moving average, but a confirmation candle is still required. If the desired pattern is formed, it might go north, consolidating its way to break R1. If somehow the pattern is reversed, it would find S1 at $40.04, from where it could try to bounce back.
But if it breaks it clean, it would find another line of defense in S2 at $35.94. The possibility of price breaking south through S1 and S2 is rare but probable. A positive earning could fuel the price further up.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/03/05/marvell-technology-mrvl-earnings-beat-industrys-past-ill-fate/