The situation is this, peak was touched, narrative and rally are over, catalysts are already burned, the only way we can have a new bull rally is with a new innovation in the AI industry, or something big in the macro economics or geopolitical side.
I am from Colombia and building my Family tree but I never suspected too many DNA origins!!
Nobody has a crystal ball, but I could never predict even in my worst nightmares that the price would fall like this during this week when most of the news are just neutral.
META and MSFT earnings out.
FED Meeting held, rates are steady.
Is there any other news, event, catalyst which can cause this stock to continue bleeding?
-25% erased in less than 5 days.
I should have sold in the 250s, for the next time I will never ever hold when is sinking more than 10%.
Now I am officially a bag holder with my average in 326.
Is this to be a serious concern or just noise?
I work in tech, and after doing my due diligence, I decided to invest in MRVL. The chips they produce, the company’s market cap, and its fundamentals all looked solid to me. That said, I won’t lie, I was also influenced by Jensen Huang’s endorsement. It felt like the final signal to jump in (lesson learned).
I bought the stock in the pre-market at $326.50 (Absolute Peak 🙃) and it hasn’t broken even since.
I’m still waiting for the stock to establish a solid support level, but at the moment it seems that MRVL may need several more quarters of strong execution to justify its valuation, especially now that the AI infrastructure rally has cooled.
Given all of that, I’d like to hear your thoughts. What are your expectations for MRVL over the medium term?
If so, why MRVl is taking the biggest hit? Back to pre Jensen endorsements?
Is wall street changing the narrative about AI and Semis ?
I think a lot of people are overlooking what actually happened with WDC this week.
The recent decline appears to be driven more by one time events than by a deterioration in the business itself.
First, the SanDisk share exchange officially closed on June 22. Investors who received WDC shares through that transaction often sold them immediately. At the same time, arbitrage funds that had been hedging the deal closed their positions. This created a large amount of temporary selling pressure that was unrelated to the company’s operating performance.
Second, WDC retired about 858 million dollars of convertible debt before its 2028 maturity. To do that, the company issued about 21.3 million new shares. This diluted existing shareholders and reduced near term earnings per share. However, it also eliminated a significant amount of debt, reduced future interest expense, and strengthened the balance sheet. This is generally viewed as a short term negative but a potential long term positive.
Another factor that may have added to the selling pressure was the downgrade from Fox Advisors on June 22. They lowered their rating from Outperform to Equal Weight because they believe expectations for HDD pricing have become too optimistic after the stock’s massive rally. Importantly, this was not based on concerns about WDC’s execution or financial health. It was mainly a valuation call after the stock appreciated significantly.
The key point is that all of these events have already happened. The share exchange is complete. The dilution has already occurred. The analyst downgrade is already public.
From this point forward, I believe the stock will be driven much more by fundamentals such as AI driven storage demand, HDD pricing, free cash flow, margins, and the next earnings report rather than by these one time corporate events
The Week initiated in the 780s and now heading towards 500s, not even MU earnings catalyzed.
What is driving this move today?
Is like since June 8th, everytime the stock is recovering we have a massive Pullback, in just a couple of minutes we were at 315 and then down to the 280s, what’s the reason about this behavior? Is like a 10% move swing all the days but never breaking the 300s for more than one day.