Analysis: MRVL ULTA COTY URI QCOM NVDA CRM SNOW

* We're watching the reports after the close from Ulta Beauty and Marvell.

* Ulta's holiday quarter guidance could propel AAP portfolio stalwart Coty even higher.

* Cloud and network strength bode well for Marvell's earnings and guidance, but its China exposure could cause troubles.

After today's close we have quarterly results from Action Alerts PLUS Portfolio holding Marvell (MRVL) as well as beauty retailer Ulta Beauty (ULTA) . The latter is not a holding here, but should offer clues related to our position in Coty (COTY) . Over the last month, COTY shares have climbed around 24%. The company has been a stalwart for the portfolio during November, alongside the shares of United Rentals (URI) , Qualcomm (QCOM) , and a few others. Upbeat guidance for Ulta's holiday shopping quarter, typically a strong one for the company, should propel COTY shares even higher and if we see them move past 4% of the portfolio some prudent trimming may follow.

Turning to Marvell, earnings from Nvidia (NVDA) last week as well as those from Salesforce (CRM) and Snowflake (SNOW) last night point to the slump in cloud being over. That bodes rather well for Marvell's earnings as well as its guidance. So does the growing and expected use of AI, which should drive demand for not only data center, but networking. Those two businesses account for 34% and 24% of Marvell's revenue with carrier infrastructure, the third leg to the company's primary revenue stool at 21%.

When we discussed Nvidia's earnings and its robust outlook for data center and networking, we said we remain on the sidelines until we had Marvell's quarterly report in hand. The reason for that was the warning shot fired by Nvidia that it expects a sharp slowdown in its business with China and other countries like Vietnam, and certain Middle Eastern countries that are subject to U.S. export curbs.

Depending on the quarter, Marvell derives 40%-42% of its revenue from China. While we don't expect all of Marvell's business to be subject to export curbs and demand from other areas should offset that decline, the risk is Marvell's guidance could be softer than expected and weigh on the shares. If that's the scenario that plays out, we would look to use that weakness to add to our MRVL position, especially if Marvell signals it, like Nvidia, is developing chips that would overcome those restrictions. Since reporting its quarterly results, NVDA shares have given back about 7% of their recent gains. We would love to pick up some MRVL shares near $50 if we get the chance, provided of course, the medium outlook continues to be strong.

AAP is long MRVL, COTY, URI, QCOM.