Wall Street ended the week on a cautious note as markets dipped, tech stocks faltered, and investors braced for fresh inflation data. 

Beyond the markets, political and corporate drama dominated headlines from Trump’s unprecedented attempt to oust a Fed governor and a court ruling against his tariffs, to Nvidia’s blockbuster earnings and Elon Musk’s latest clash with regulators.

A glance at the biggest stories that captured attention this week. 

Tech drags as investors play safe

Wall Street had a crazy week, with mixed signals making things a bit uncertain. The main indexes were all down: the Dow Jones fell 92 points, the S&P 500 slipped 0.6%, and the Nasdaq dropped 1.2%. 

The tech sector took the biggest hit, with big names like Nvidia, Super Micro Computer, and Broadcom pulling things down as investors got a bit defensive before new inflation numbers came out.

Instead of big tech, investors seemed to prefer safer bets. 

Consumer staples and value stocks did better, a clear sign of the cautious mood as the market heads into September, which is often a tough month.

There were some interesting individual movers, too. Keurig Dr Pepper took a big hit after announcing an acquisition, while Deckers Outdoor had a good week thanks to some new product launches. 

Regional banks and chipmakers had a mixed performance, with investors trying to balance the good news from Fed Chair Jerome Powell’s dovish comments against. 

Trump vs. the Fed

The Fed vs White House showdown climbed to a different level this week as US President Donald Trump ordered the removal of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud as the reason for her dismissal. 

This marked the first time a sitting president has attempted to remove a Federal Reserve governor in the institution’s 112-year history. 

Trump claimed he had constitutional authority to act, accusing Cook of making misleading statements regarding mortgage agreements. 

Cook denied the allegations and pushed back against Trump. She filed a lawsuit seeking to block her termination while claiming that the President doesn’t have the legal authority to remove her.

The lawsuit argues her firing violates federal law, which requires “cause” for removal, a standard generally interpreted as serious misconduct. 

The case threatens to challenge longstanding Federal Reserve independence and could reach the Supreme Court, potentially revisiting a historic 1935 decision protecting independent agencies. 

Trump’s move is seen as an attempt to increase control over the central bank, intensifying political tensions. 

The White House defended the firing, while economists and officials caution that such interference risks economic stability. Cook remains on the board pending court proceedings. Read full report here

AI demand powers Nvidia’s record quarter

Nvidia had a fantastic second quarter, blowing past expectations with $46.7 billion in revenue. That’s a huge jump, up 56% from this time last year and 6% from the last quarter.

The company’s earnings per share (EPS) were also strong at $1.04, beating the $1.01 forecast. 

The real story here is the data center business, which saw a massive 56% growth. This is Nvidia’s bread and butter right now, thanks to the soaring demand for AI infrastructure.

The company’s gross margin held strong at 72.4%. CEO Jensen Huang pointed to the rapid adoption of their new Blackwell AI platform as a key driver behind the AI boom.

Despite all the good news, some analysts were expecting even more from the data center revenue, which caused a slight dip in the stock after hours.

Looking ahead, Nvidia is optimistic, forecasting about $54 billion in revenue for the third quarter. 

However, this doesn’t include potential shipments of their H20 chips to China, a situation complicated by ongoing regulations. Read full report here

SEC accuses Musk of late Twitter disclosure

In another Musk vs US administration saga, Elon Musk is pushing back against the SEC. 

On Thursday, his legal team filed a motion to dismiss a lawsuit from the US Securities and Exchange Commission, which claims he was late in reporting his stake in Twitter back in 2022.

The SEC alleges Musk waited 11 extra days to reveal his initial 5% ownership, allowing him to snap up more shares at a lower price and pocket $150 million.

Musk’s lawyers argue the delay was simply a mistake and was fixed quickly. 

They insist there was no intent to mislead anyone or harm investors. His filing goes even further, accusing the SEC of overstepping its authority and unfairly targeting him, calling the lawsuit a waste of the court’s time. 

Ultimately, Musk is asking the court to throw the case out entirely.

Court curbs Trump’s tariff powers

In the latest blow to President Donald Trump, a US appeals court on Friday ruled that most of his tariffs are illegal. 

In a 7-4 decision, the court said Trump overstepped his authority under a law meant for emergency economic powers, arguing that the power to impose tariffs belongs to Congress, not the President.

The ruling strikes down the “reciprocal” tariffs he had placed on many countries, including a 10% blanket tariff on nearly all U.S. trading partners.

While the ruling is a significant setback, the tariffs won’t disappear immediately. 

The court has given the Trump administration until October 14 to appeal to the Supreme Court. 

Trump has already vowed to fight the decision and says he expects the Supreme Court to rule in his favor. Read full report here

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The 2025 NFL season kicks off on September 4 with the defending champion Philadelphia Eagles hosting the Dallas Cowboys. For investors, this isn’t just football – it’s a financial playbook.

The NFL commands the largest share of US sports betting volume, and with 38 states now legalizing some form of sports wagering, the season’s kickoff marks a surge in user engagement, betting activity, and platform revenues.

Sportsbooks see a spike in app downloads, active users, and betting handle during the NFL’s opening weeks. That makes now a prime time to position in the sector.

Below are two top sports betting stocks poised to benefit from the NFL frenzy.

DraftKings Inc (NASDAQ: DKNG)

DraftKings is the second-largest online sportsbook in the U.S., commanding roughly 25% market share.

With operations in 25 states and Washington, DC, it’s a pure digital play – no brick-and-mortar distractions, just scalable tech and aggressive user acquisition.

The company added 3 million active users in 2024 alone, a testament to its marketing muscle and product stickiness. As the NFL season begins, DKNG typically sees a surge in betting volume, especially around marquee matchups and fantasy contests.

Financially, the company is turning a corner. Revenue growth has been robust, and EBITDA margins are improving. In 2025, DraftKings plans to introduce a tax surcharge in high-tax states, a move aimed at protecting profitability.

While this could slightly dent market share, it signals a shift toward sustainable earnings. Analysts remain bullish, citing its dominant brand, expanding casino offerings, and potential for international growth.

Wall Street currently has a consensus “overweight” rating on DKGN shares with a mean target calling for upside to roughly $55. For investors seeking exposure to the NFL betting boom, DraftKings stock is a front-runner.

Flutter Entertainment Plc (NYSE: FLUT)

Flutter Entertainment, the parent company of FanDuel, is the undisputed leader in US online sports betting, with a commanding 48% market share.

FanDuel’s dominance is especially pronounced during the NFL season, when its intuitive interface, aggressive promotions, and same-game parlays attract millions of bettors.

Operating in 24 states, FanDuel is often the first app downloaded by new users, giving Flutter a powerful funnel for customer acquisition.

Beyond the US, Flutter’s global footprint adds resilience. It leads in the UK and Ireland, and its Australian brand SportsBet holds 45% market share. This geographic diversification cushions against regulatory shocks and seasonal dips.

Flutter’s reinvestment strategy – plowing profits back into marketing and tech – has paid off with consistent top-line growth. As the NFL season kicks off, expect FanDuel to dominate headlines and betting volumes.

Wall Street currently rates FLUT shares at “overweight” as well. For investors, Flutter stock offers both scale and stability, making it a compelling pick for the sports betting surge.

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Goldman Sachs President John Waldron just cashed in $13.6 million worth of company stock, selling 18,244 shares over a couple of days in late August.

The shares went for between $748 and $751 each, according to the regulatory filing that came out Friday.

This is pretty notable timing since Waldron is widely seen as the heir apparent to CEO David Solomon.

It could just be routine portfolio management or estate planning, but it also raises questions about his confidence in the company’s near-term prospects.

The sale happened over August 27-28, so it was planned and executed pretty quickly. At Goldman’s current stock price levels, $13.6 million represents a decent chunk of shares for even a senior executive to unload at once.

The filing breaks down exactly how Waldron did this – he spread the sale across six different trades to move all 18,244 shares. The average price worked out to about $749 per share, which got him to that $13.6 million total.

Strategic shuffle at Goldman

Waldron’s been at Goldman for over two decades now, starting there in 2000 and working his way up to President and COO in 2018.

So this isn’t some outsider making a quick move; he knows the company inside and out.

What’s important to note is that even after this big sale, Waldron still owns around 106,268 shares, which keeps him as one of Goldman’s biggest individual shareholders.

The sale represents maybe 6% of his total holdings, which puts it more in the category of portfolio management than any kind of panic move.

What makes this sale even more interesting is that Waldron and CEO Solomon both got massive share retention bonuses worth $80 million combined earlier this year.

That was Goldman’s way of keeping them locked in and aligned with shareholders, so selling stock just months later sends a bit of a mixed message.

Waldron’s leadership spans oversight of Goldman Sachs’ key divisions like investment banking, global markets, and asset and wealth management, and he is currently a member of Goldman’s board of directors.

Waldron’s stock sale sparks investor buzz

Goldman’s stock has been on a tear this year, hitting all-time highs thanks to strong revenue and profits from investment banking and trading.

So from a timing perspective, Waldron picked a pretty good moment to cash in some chips. His sale can be more to do with basic financial planning than any red flags about Goldman’s future.

Everyone’s keeping an eye on Waldron since he’s basically the consensus pick to eventually take over from Solomon as CEO.

When someone in that position makes any kind of move with their stock holdings, investors tend to read more into it than they probably should.

Sure, $13.6 million sounds like a lot of money, but when you look at his total stake in the company, it’s really just a small slice.

He still owns around 106,268 shares, so this sale doesn’t suggest he’s lost faith in Goldman’s game plan or where the company is headed.

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Retail stocks have done fairly well since April, as indicated by the “XRT” exchange-traded fund (ETF). Still, R5 Capital founder Scott Mushkin says the second half of 2025 will likely be a different story.

“We don’t like much in retail,” he told CNBC in a recent interview, citing widespread structural and competitive concerns across the sector. But there’s one exception: Dollar Tree Inc (NASDAQ: DLTR).

Dollar Tree shares are already up more than 50% versus the first week of April, but Scott Mushkin continues to see it as a rare bright spot within the retail space, poised for further upside ahead.

Why is Mushkin dovish on retail stocks

Mushkin is keeping bearish on retail stocks for the second half of 2025 because the sector faces a confluence of macro and competitive headwinds.

Inflation ticked up again in August, hitting its highest level since February – squeezing consumer wallets and shifting spending toward essentials.

That’s bad news for discretionary-heavy retailers like Best Buy, which Mushkin says is struggling with “empty stores” and a broken model.

Tariff pressures and the elimination of de minimis exemptions are also expected to raise import costs, especially for low-margin retailers. Meanwhile, Dollar General faces pricing erosion and intensifying competition from Walmart, Amazon, and Dollar Tree itself.

“We think there’s a lot of downward pressure on some of these products,” Mushkin warned, adding that Dollar General’s pricing surveys show it’s “well above Walmart” in key categories.

Why Mushkin likes Dollar Tree stock

Despite his bearish stance on retail, Mushkin is bullish on Dollar Tree stock – and not because of macro tailwinds.

“It really has nothing to do with the tariffs or the macro,” he said, adding his positive view is based primarily on the firm’s long-awaited success in rolling out its multi-price point strategy.

“They’ve stumbled on it until this year,” Mushkin noted, but now sees traction that could drive both traffic and sales.

The strategy allows DLTR to expand its product assortment and compete more effectively with rivals. As budget-conscious consumers seek value, Scott Mushkin believes Dollar Tree is uniquely positioned to benefit.

“That’s kind of the icing on top of the cake,” he added, forecasting rapid earnings growth over the next 12 months.

How to play DLTR shares heading into Q2 earnings

According to Mushkin, the discount retailer will come in ahead of Street estimates for its fiscal Q2 on September 3rd, which he believes will serve as the next near-term catalyst for DLTR shares.

Heading into the company’s earnings release, Wall Street analysts are keeping constructive on the Nasdaq-listed firm as well.

According to The Wall Street Journal, the consensus rating on Dollar Tree stock currently sits at “overweight” with price targets going as high as $143, indicating potential upside of another 30% from here.

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The IPO season is here, with several companies like Circle, CoreWeave, Bullish, Webull, and eToro already public. The Klarna IPO, which may come as soon in September, will likely be the biggest one of the year. This article gives details about this IPO and whether it will be a good buy.

What you need to know about the Klarna IPO

Klarna is one of the biggest fintech companies in the world. It is a top player in the booming buy-now, pay-later (BNPL) industry. Its main service is that it lets people shop and pay for the products in four equal instalments without paying any interest. 

Like Affirm, it has introduced longer-term financing, which often comes with higher interest rates. The company mostly operates in Europe and North America.

Klarna has raised billions of dollars over time. It most recent funding was a $1.63 billion debt financing from Banco Santander. It also raised $800 million in 2022 at a $6.7 billion valuation from the likes of Sequoia, Silver Lake, and Canada Pension Plan. 

That valuation was much lower than the previous one of over $45 billion, when it was the most valuable European startup. The cut in valuation came in 2022 as central banks raised interest rates and the valuations of public and private companies plunged.

Klarna’s valuation has likely ticked up in the past few years as macro conditions have improved. Forge, a company that allows trading of private companies, places its valuation at $14.9 billion as its stock has jumped from $20 in 2023 to $37 today.

Is Klarna a good stock to buy after IPO?

The most recent financial results showed that Klarna’s business was growing. Its revenue jumped to $2.8 billion in 2024, up from $2.2 billion in the previous year. 

In contrast, Affirm made $3.2 billion in 2024 and $2.32 billion in the previous year. Its net income was about $52 million, while Klarna reported a profit of $21 million. This means that, in theory, Klarna’s valuation should be much lower than Affirm’s $28 billion. 

Klarna ended last year with over $3.2 billion in cash and equivalents, $13.8 billion in total assets, and liabilities of $11.57 billion.

As one of the most popular fintech companies, the Klarna stock price will likely go parabolic shortly after IPO as investors will ignore it valuation. This is similar to how other recent IPOs like CoreWeave, Bullish, and Circle performed. 

Klarna’s stock will then dive after going public as the listing hype eases and talks of the lockup expiry intensify. 

In the long term, however, Klarna will be a good stock to buy as Affirm has demonstrated. Affirm stock price has jumped by over 868% from its all-time low in 2022 as the BNPL industry has become more attractive. 

Klarna, like Affirm, is available in the checkout of most global brands like Booking.com, Apple, Samsung, Uber, H&M, and ZARA, among others. It is also one of the most dominant players in the BNPL industry. 

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The Indian state of Madhya Pradesh handed out some massive power plant contracts worth about $3.7 billion, and it’s all going to coal.

Adani Power and Torrent Power are splitting up 2,400 MW of new coal capacity, with Torrent getting the bigger piece, a 1,600 MW ultra-supercritical plant, while Adani gets an 800 MW facility.

This is part of India’s aggressive plan to add 80 GW of coal power by 2032, which might sound contradictory given all the talk about renewable energy.

But the reality is India’s electricity demand is growing so fast that they’re basically saying, “we need everything we can get.”

Torrent, Adani power up big

Torrent Power officially got the green light from MP Power Management Company to build that massive 1,600 MW coal plant. They’re putting up about $2.5 billion to build this thing from scratch, using two 800 MW ultra-supercritical units.

The deal is pretty straightforward: Torrent will sell all the power exclusively to MPPMCL for 25 years at Rs 5.829 per kilowatt-hour.

That’s a locked-in revenue stream for the next quarter-century, which is exactly the kind of certainty power companies love when they’re making billion-dollar investments.

One major advantage for Torrent is that they don’t have to worry about securing coal supplies.

Under the government’s SHAKTI Policy, MPPMCL will handle getting the coal to the plant, which removes a major headache and cost from Torrent’s plate.

The timeline is ambitious but doable, as they have 72 months from when they sign the power purchase agreement to get the plant up and running.

Adani Power got the smaller piece of the pie but still a significant one, an 800 MW coal plant that’ll cost them about $1.2 billion.

What’s notable is this is their fourth big power contract in just the past year, showing they’re really pushing hard to expand their footprint across India.

Both companies are going with ultra-supercritical technology, which is basically the cleanest way to burn coal these days.

It’s more efficient than older coal plants and puts out fewer emissions per unit of electricity generated. It’s not exactly green energy, but it’s about as clean as coal gets.

Modi’s massive coal expansion plan

The PM Modi-led Indian government has set an ambitious target when it comes to power generation.

They want to add 80 GW of new coal capacity by 2032, which would push India’s total coal power to over 290 GW. That’s more than a one-third jump from where they are now.

India’s electricity demand is growing sharply as the economy expands and more people get access to power. Renewable energy is great, but solar and wind don’t work when the sun isn’t shining or the wind isn’t blowing.

Coal might not be popular with environmental groups, but it provides that 24/7 baseload power that keeps the grid stable.

India’s been burned before by power shortages that hurt economic growth, so they’re clearly prioritizing energy security over environmental concerns.

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US stocks, as represented by the benchmark S&P 500 index, have done exceptionally well since the start of 2025. Still, a handful of them are currently in the oversold territory.

For investors, this could mean opportunity, particularly because a few of these oversold names are now flashing buy signals.

Plus, with investors now betting on a possible rate cut in September, technical indicators suggest three heavily sold-off names- Keurig Dr Pepper, Charter Communications, and Hormel Foods – are poised for a significant rebound ahead.

Each has dipped below the critical “30” threshold on the 14-day Relative Strength Index (RSI), a level often associated with oversold conditions and potential upside.

Keurig Dr Pepper Inc (NASDAQ: KDP)

Keurig Dr Pepper has taken a steep tumble, shedding over 17% this week following the announcement to acquire Dutch coffee giant JDE Peet’s in a deal valued at $18 billion.

The market reacted harshly, with HSBC downgrading the stock, citing the acquisition’s hefty price tag and increased leverage.

Analyst Sorabh Daga noted, “We don’t think KDP needed to lever itself up to 6-8x net debt/reported EBITDA to exit the Keurig coffee business.”

Yet, the deal isn’t without merit. The company expects $400 million in cost savings over 3 years and plans to split its beverage and coffee divisions into separate public entities.

With an RSI of 29 and Wall Street analysts projecting a 29% upside on average, KDP shares may be brewing a comeback.

Charter Communications Inc (NASDAQ: CHTR)

Charter Communications, the parent of Spectrum internet services, has seen its shares slide more than 4% this week, continuing a trend of investor skepticism.

Despite secular headwinds, Bernstein recently upgraded the stock to “outperform,” citing its undervalued price.

Analyst Laurent Yoon acknowledged the challenges but remained optimistic: “When something is cheap, it’s cheap for a reason… but we are looking ahead to CHTR’s narrative for ’26.”

With an RSI signaling oversold territory and the mean price target suggesting a potential 54% rally, Charter Communications stock may be nearing a turning point.

If the company can navigate its structural issues, the current weakness could represent a compelling entry point.

Hormel Foods Corp (NYSE: HRL)

Hormel Foods, known for its packaged meats and pantry staples, suffered a sharp 13% drop after disappointing third-quarter earnings.

The miss rattled investors, pushing the stock into oversold territory.

While the results were underwhelming, Hormel’s long-term fundamentals remain intact, supported by its strong brand portfolio and defensive positioning in consumer staples.

The RSI now sits below 30, and analysts see room for recovery as the company adjusts its pricing strategy and cost structure.

For contrarian investors, Hormel stock’s recent plunge may offer a rare opportunity to buy a stable name at a big discount – especially if inflationary pressures ease and margins begin to normalize.

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Alibaba stock price surged to its highest level in March as Chinese equities surged after it published strong financial results on Friday. BABA also jumped after reports showed that it had developed a chip that could challenge NVIDIA. It rose to a high of $136.42, up by 71% from its lowest level this year.

Alibaba to challenge NVIDIA

The Alibaba stock price surged after the WSJ reported that the company had developed a chip that may challenge NVIDIA’s dominance. Most notably, the chip will be fabricated by a local Chinese company instead of TSMC. 

The new milestone comes as the US and China continue battling for technology dominance and as chips become the most important part of the global economy. 

The US has blocked Nvidia and its chip companies, like AMD and Intel, from selling advanced chips to China. It argues that these chips may help the Chinese military develop more advanced equipment. 

China has then gone to the offensive and invested billions of dollars to develop advanced chips. Just recently, the government recommended its companies against buying NVIDIA’s H20 chips after the administration gave it a go-ahead. 

Therefore, the BABA stock price surged as investors anticipated that it would become the next big player in the AI and semiconductor industry. 

Alibaba published modest results

The Alibaba stock price also jumped after the company published modest financial results. Its revenue rose by 2% to $34.5 billion in the second quarter.

Notably, excluding Sun Art and Intime, which the company has disposed of, its revenue growth would have been 10%. The net income jumped by 76% to over $4.8 billion, helped by its equity investments and gains from divested businesses.

The closely-watched Cloud Intelligence Group, which competes with Amazon’s AWS and Microsoft’s Azure, grew by 26% YoY to $4.6 billion as it continued to benefit from the AI demand.

Alibaba’s International Digital Commerce revenue rose by 19% YoY despite Donald Trump’s tariffs. The Chinese e-commerce business made $12.5 billion, a 10% YoY increase. 

However, the company’s Ele.me has come under pressure as competition from JD and Meituan jump. JD’s entry into the sector has led to a race to the bottom, with surging consumer discounts and rider incentives.

China stocks gains and Banma Network IPO

The Alibaba stock price has jumped because of the ongoing surge in Chinese shares as shown by the performance of the Shanghai Composite and equities like Cambricon. 

This stock rebound is mostly because Chinese investors have continued to turn to the market after the collapse of the real estate sector.

Alibaba shares have also jumped after the company decided to spin off its Banma Network Technology, which focuses on creating smart vehicle operating systems and cockpit solutions.

Alibaba stock price forecast

The daily timeframe chart shows that the BABA stock price has rebounded in the past few months, moving from a low of $78.9 in January to $135. It has already crossed the important resistance level at $132, the highest swing on May 14. 

The BABA stock price has jumped above all moving averages, while top oscillators have pointed upwards. Therefore, the stock will likely keep rising as bulls target the key resistance level at $146, its highest point on March 17. A move above that level will point to more gains, potentially to the resistance point at $150. 

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The Dow Jones, S&P 500, and Nasdaq 100 indices and their ETFs moved sideways last week as investors focused on monetary policy and Nvidia earnings. The S&P 500 Index pulled back to $6,460 from the year-to-date high of $6,500.

Similarly, the Dow Jones Index was trading at $45,545, while the Nasdaq 100 fell from $23,965 to a low of $23,415. This article looks at the top catalysts for the indices and the ETFs like VOO, DIA, and QQQ.

US nonfarm payrolls data

The most important catalyst for the Dow Jones, S&P 500, and Nasdaq 100 indices is the upcoming US nonfarm payrolls (NFP) data scheduled on Friday.

This is an important report that will provide more color on the health of the American economy and will help to determine what the Federal Reserve will do in the next meeting. 

In a recent statement at the Jackson Hole Symposium, Jerome Powell, the Fed Chair, hinted that the bank will cut interest rates in September, citing the deteriorating labor market. 

The last report showed that the economy created just 73,000 jobs in July, much lower than what analysts were expecting. This figure will likely be downgraded further based on what happened recently. Traders will want to see the revision. 

The indices and their ETFs will also react to the unemployment rate. Data shows that analyts anticipate that the jobless rate rose to 4.3% in August as the economy created 78k jobs.

A weak jobs report will confirm that the Federal Reserve will cut interest rates in September, which most analysts already expect. The stock market tends to do well when the Fed is cutting interest rates.

Donld Trump tariffs in limbo

The other major catalyst for the Dow Jones, S&P 500, and the Nasdaq 100 is the latest appeal decision on Donald Trump’s tariffs. In a ruling, a bench found that most of Trump’s tariffs are illegal, a move that the stock market would welcome. 

However, the court allowed the tariffs to remain, and the Trump administration appealed. Most analysts believe that the case will go all the way to the Supreme Court, which may side with the administration. 

Corporate earnings

The other minor catalysts for the indices and their ETFs will be corporate earnings. Just a handful of companies will publish their earnings, including names like Carnival, McCormick, Nike, Constellation Brands, and Lamb Weston.

The recent earnings season was highly successful. A report by FactSet shows that 98% of all companies in the S&P 500 Index have published their earnings. Of these 81% of them published an earnings beat, while the earnings growth was 11.9%. This was the third straight quarter of double-digit growth.

Top economic data

Another minor catalyst for the US stock market will be macro data from the United States and other countries. The top data to watch will be the final manufacturing and services PMI, JOLTs job vacancies, and ADP private sector data. 

While important, their impact on the stock market will be muted since all eyes will be on the nonfarm payroll (NFP) data.

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Marvell stock price plummeted by over 18% on Friday after the semiconductor giant published its earnings report. MRVL plunged to a low of $62.87, its lowest level since June 4, and 26% from its highest point this month. So, is it safe to buy the MRVL stock dip or wait for it to plunge further?

Marvell stock plunged after earnings

Marvell Technology’s stock price plummeted even after the company published strong financial results. Its revenue surged by 58% in the second quarter to a record $2 billion.

This revenue growth was driven primarily by the tailwinds in the artificial intelligence (AI) industry and the recovery of it enterprise networking and carrier infrastructure businesses.

AI data center revenue jumped by 70% to $1.4 billion, a trend that may continue as it continues to reach large deals. Its enterprise and carrier revenye rose by 43%, a strong improvement considering that it has been in a slowdown in the past few quarters. 

Marvell’s revenue growth was accompanied by its margin expansion. Gross margin rose to 50.4% from the previous 50.3%, while the operating margin rose to 14.5%. This helped to push its net profit up by 120% to $585 million. The CEO said:

“Marvell’s growth is being fueled by strong AI demand for our custom silicon and electro-optics products, as well as a significant increase in the pace of recovery in our enterprise networking and carrier infrastructure end markets.”

The main reason why the Marvell stock price crashed is that the managment’s forward guidance was weaker than expected. Its guidance was that its revenue for the third quarter will be $2.06 billion, a 36% increase from the same period last year. 

While a 36% annual growth is a good one, it was lower than what analysts were expecting. Historically, Marvell tends to be highly conservative, meaning that its real numbers will likely be better than estimates. 

Marvell stock price also plunged after Nvidia, a top player in the chip industry, warned that its business was slowing. Also, there is a fear that some Chinese companies will disrupt the semiconductor industry. 

MRVL stock price technical analysis

The daily timeframe chart shows that the MRVL stock price has plunged from its highest point in January, when its market cap overtook that of Intel. 

It plunged from a high of $127.30 in January to a low of $47.50 in April. Most recently, the stock formed an ascending channel, which was part of its bearish flag pattern. It has moved below the lower side of this pattern.

Marvell stock price has moved below the 50-day and 100-day Exponential Moving Averages (EMA). It has moved to the strong, pivot, reverse point of the Murrey Math Lines tool. 

Therefore, the most likely scenario is where the Marvell stock price continues plunging, potentially to the year-to-date low of $47.50. It will then bounce back later this year.

Read more: JPM says ignore earnings noise and buy Marvell stock like there’s no tomorrow

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