Is Marvell (MRVL) stock a Buy after 10% overnight crash?
Photo: Finbold
Investors reacted violently to the news that Marvell (NASDAQ: MRVL ) is in the final stages of acquiring Lumentum (NASDAQ: LITE), sending the stock 9.97% lower to $226.55 in the after-hours session on Wednesday, October 28. The bearish reactions appear, by press time early on Thursday, to be driven primarily by valuation concerns. Indeed, at the latest close, Marvell’s market capitalization stood at $226.15 billion, and Lumentum’s at $82.78 billion, meaning the former would be purchasing a company 36.60% its size – a fact that naturally leads to various financing concerns.
Source: Finbold
