Editor's Note: Once named the #1 stock picker by TipRanks, Luke Lango has identified 40 stocks before they soared by 1,000% or more. Today he's giving away his #1 investment to play the booming space economy, free. Click here to get the name or ticker or read more below.
Luke Lango Senior Investment Analyst, InvestorPlace
P.S. I've only been investing for 12 years, and I've already found 39 1,000% winners. I found another investment that could potentially skyrocket, and I'm giving you the name free. Click here before this briefing comes down.
Today’s editorial pick for you
Marvell (MRVL): Why Analysts Aren’t Worried About the Post-Earnings Drop
MRVL reported $2.74 billion in revenue for its second quarter, slightly ahead of the $2.72 billion analysts expected, according to FactSet. The company also reported adjusted earnings of 94 cents per share, beating the 93 cents expected by Wall Street. Even though Marvell beat expectations, investors were not impressed.
The bullish calls are notable because MRVL has already had a huge year. The shares have climbed about 184% so far in 2026, meaning investors had very high expectations heading into the earnings report.
MRVL Delivered Modest Earnings Beat
Bank of America analyst Vivek Arya believes investors may be focusing too much on that short-term disappointment. “We ignore this expectation mismatch,” Arya wrote, as quoted by CNBC.
Arya remains confident in Marvell’s longer-term growth prospects. He described Marvell as a “unique growth franchise” and expects the company’s revenue growth to accelerate toward the mid-50% range year over year, compared with the mid-40% range currently.
He believes that growth can come from Marvell’s relationships with major cloud companies and its technology across several important areas, including computing, networking, optics, security and storage.
Analyst Day Could Be the Next Big Catalyst
With earnings now behind it, investors could turn their attention to Marvell’s analyst day in early October. The event could give investors more information about the company’s long-term growth plans and its opportunities in artificial intelligence, cloud computing and other areas of the semiconductor market.
Morgan Stanley analyst Joseph Moore, who has an Equal Weight rating on MRVL, also sees potential for the stock to rebound. Moore said he “would be tactically long for the investor day if the stock sells off,” as also quoted by CNBC.
Should Investors Buy Marvell Stock After Earnings?
Marvell’s latest earnings report shows just how high expectations have become for the company. The company beat Wall Street’s revenue and earnings estimates, yet the stock still dropped sharply. That’s a sign that investors are looking for much more than small earnings beats after Marvell’s huge rally this year.
But the long-term story remains attractive to many analysts. Marvell is positioned in several areas of the semiconductor industry that are benefiting from growing demand for artificial intelligence and cloud infrastructure. The company’s relationships with major cloud customers could also help drive future growth. The upcoming analyst day could be especially important. If MRVL provides a strong outlook and gives investors more confidence in its long-term growth plans, the recent selloff could prove temporary.
For now, Wall Street remains largely positive. Bank of America sees as much as 51% upside to its $365 price target, while UBS, Wells Fargo, Barclays and Citi also remain bullish.
Today’s editorial pick for you
Affirm Heads into Earnings with BNPL Growth Still Running Hot
Fueling momentum, buy now, pay later (BNPL) stocks are still growing fast. In fact, the market has grown rapidly, with some estimates noting that the global market could grow from about $156.6 billion in 2023 to more than $1 trillion by 2028.
We also have to consider that Americans are carrying more debt. U.S. household debt reached about $18.8 trillion in the second quarter of 2026, according to the Federal Reserve Bank of New York. At the same time, more consumers are turning to BNPL loans to pay for everyday purchases.
According to LendingTree, 29% of BNPL users have used these loans to buy groceries. That is up from 25% a year earlier and just 14% two years ago. Consumers are also using BNPL to pay for clothing, electronics and household items.
That is good news for BNPL companies such as Affirm.
Ever been right about a stock's direction and still lost money? It happens to almost every beginner and it's almost never bad luck. It's a checkpoint you skipped before placing the trade. Bill Poulos put the 7 that matter most on one page.
Normally $29.97. Free today. Takes about 30 seconds.
AFRM is scheduled to report its fiscal fourth-quarter results on August 27 after the market closes. Wall Street expects AFRM to report earnings of about $0.33 per share. That would be a significant improvement from the same period last year.
But EPS may not be the most important number investors watch. AFRM’s growth in gross merchandise volume, or GMV, will likely get plenty of attention. GMV measures the total value of transactions made through the company’s platform. In the third quarter, Affirm’s GMV jumped 35% year over year to $11.6 billion.
The company also added more customers and merchants. Active consumers increased 22% to 26.8 million, while active merchants jumped 44% to 515,000. Affirm’s card business is growing even faster. Affirm Card GMV increased 146% to $2.1 billion, while active cardholders more than doubled to 4.4 million.
Profitability Is Improving
AFRM is also showing that it can grow while becoming more profitable.
Third-quarter revenue increased 33% to $1.04 billion. Revenue less transaction costs, an important measure of the company’s underlying economics, increased 41% to $498 million.
Adjusted operating income jumped 62% to $281 million.
For the upcoming quarter, Affirm Holdings expects GMV between $13.15 billion and $13.45 billion. The company expects revenue between $1.08 billion and $1.11 billion. AFRM also expects an adjusted operating margin of 27.5% to 29.5%. If the company beats those expectations, investors could have another reason to push the stock higher.
What Investors Really Want
A strong earnings-per-share number would certainly help. But investors will probably pay even more attention to GMV, profitability and management’s outlook for the next fiscal year.
Investors will also be watching the outlook closely. Klarna (NYSE: KLAR), another major BNPL company, recently reported better-than-expected results but lowered its full-year outlook. Its shares fell sharply after the announcement. That puts even more focus on what AFRM says about consumer spending and credit quality.
The Bottom Line
The BNPL industry still has a substantial growth opportunity.
More consumers are using installment payments, and the overall market could reach more than $1 trillion within the next few years. Affirm is currently one of the strongest companies in the space. Its GMV is growing quickly, its merchant network is expanding, its card business is taking off and its profitability is improving. Now investors want to know if that growth can continue.
If Affirm beats expectations on Thursday and gives investors a strong outlook for fiscal 2027, the earnings report could strengthen the bullish case for AFRM.
Tidak ada komentar:
Posting Komentar