When we initiated our position in Marvell Technology (MRVL) , we said we would look to patiently build out this holding given long-term growth prospects for digital network traffic, navigating the current landscape in the chip sector.
Yesterday's move lower in the market pulled MRVL shares well below our $40.41 cost basis, which clearly caught our attention. Indeed, last night's March-quarter cloud results from Action Alerts PLUS names Alphabet (GOOGL) and Microsoft (MSFT) , up 27%-28%, as well as favorable comments from Juniper Networks (JNPR) for the data center market are leading us to scoop up more MRVL shares this morning.
In addition, at the current share price, the tradeoff between potential additional downside risk vs. medium-to longer-term upside has us upgrading the shares to a One rating from Two.
After you receive this Alert, we will buy 935 shares of MRVL at or near $37.40. Following the trade, the portfolio will own 2,335 MRVL shares, roughly 2.5% of the portfolio.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)