Pocket Pivot Review - MRVL, SHOP

Published:

12 Dec 2024 09:33 ET

MRVL had a buyable gap up and is in buying range.

Marvell Technology, Inc. (MRVL) has performed exceptionally well recently:

Stock Performance:
- Shares jumped about 23% on December 4, 2024
- The stock has nearly doubled in value during 2024
- Up 14.8% in the past month, outperforming the S&P 500
Financial Results:
- Q3 fiscal 2025 revenue grew 19% sequentially to $1.516 billion
- Revenue exceeded analyst expectations by 4.29%
- Non-GAAP EPS of $0.43, surpassing estimates
Future Outlook:
- Forecasting 19% sequential revenue growth for Q4
- Projecting 26% year-over-year revenue growth for Q4
- Custom AI silicon programs now in volume production
Analyst Optimism:
- Bank of America raised price target to $125 from $108
- Analysts project 20-25% long-term sales growth potential
Market Position:
- Strong demand in AI and cloud sectors
- Transformed into a "data center silicon leader"

Marvell's success is primarily driven by its focus on AI technologies and strong performance in the data center market, positioning it well for continued growth in the evolving tech landscape.

SHOP- Voodoo pullback to its 10dma.

Financial Performance

Q3 2024 revenue grew 26% year-over-year to $2.16 billion, beating analyst estimates
Net income increased to $828 million in Q3 2024, up from $718 million in Q3 2023
Gross Merchandise Volume (GMV) rose 24% year-over-year to $69.7 billion
Free cash flow margin expanded to 19% in Q3 2024

Business Growth

Achieved sixth consecutive quarter of >25% revenue growth (excluding logistics)
Monthly Recurring Revenue grew 28% in Q3, indicating strong merchant relationships
Merchant solutions revenue increased 26.4% to $1.55 billion

Recent Achievements

Record $11.5 billion in sales during Black Friday-Cyber Monday weekend, up 24% from last year
Served over 76 million customers globally during this period
Peak sales reached $4.6 million per minute on Black Friday

Stock Performance

Stock price up 48% through November 2024, outperforming the S&P 500
Current stock price at $115.91, up 2.17% on the day

Shopify's strong performance across financial metrics, business growth, and recent achievements demonstrates its continued success in the e-commerce sector.

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2025 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.