Ringing the Register on Marvell Again and Adding to Another Holding
We'll put a slice of our MRVL gains to work on a position's post-earnings weakness.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
MRVL | Sell | 240 | 147 | 1,220 | 3.0 |
NFLX | Buy | 250 | 97.50 | 1,370 | 2.3 |
After you receive this Alert, the Pro Portfolio will make the following trades:
-- Sell 240 shares of Marvell (MRVL) at or near $147. Following the trade, MRVL shares will account for roughly 3.0% of the Pro Portfolio's holdings.
-- Buy 250 shares of Netflix (NFLX) at or near $97.50. Following the trade, NFLX shares will account for roughly 2.3% of the Pro Portfolio's holdings.
The weekend’s news that Alphabet/Google (GOOGL) is in talks with Marvell for a new round of chips is lifting MRVL shares, and we’re not about to complain given our position and how this supports our larger view on AI chip demand. At the same time, this additional move higher will push MRVL into an even deeper overbought condition. That is leading us to lock in another super-profitable slice of MRVL, following a similar move on Friday that generated a 135% gain.
With our MRVL price target already at $150, we will see some of the herd revisit their targets over the coming days. However, with reports indicating Google and Marvell are “in talks,” we’ll want something more definitive, like we saw last week with Meta (META) and Broadcom (AVGO) before we revisit our MRVL target.
We will take a portion of these significant gains and use them to add to the Portfolio’s position in Netflix shares following their post-earnings fall. In our discussion after Netflix earnings, we laid out our game plan, and today we are enacting the first part of it.
We are making a modest move given the market’s overbought condition, and the same can be said for the technology sector when viewed through the lens of the Technology Select Sector SPDR Fund (XLK) below.
In that same NFLX note, we shared that we see strong support for the shares between $91-$92, which are the 50-day and 100-day moving averages. Should market forces pull the shares to that level, resulting in a successful test of support, we’ll look to step a bit deeper into our position.
(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.)
More Pro Portfolio:
- We're Locking in Big Gains on 4 Holdings Flashing Deeply Overbought Conditions
- We're Tracking 25 Signals Across 10 of Our Investment Themes
- Weekly Roundup: Widening Our Lead... But Storm Clouds Are Brewing
At the time of publication, TheStreet Pro Portfolio was long MRVL, GOOGL, META, AVGO and NFLX shares.
