Key Takeaways
- Marvell Technology’s stock fell despite strong AI-related revenue, as its automotive segment saw a decline.
- Netflix received positive attention from analysts, with its push into live events seen as a significant growth area.
- Zscaler’s shares climbed after the cybersecurity firm reported better-than-expected earnings and raised its financial outlook.
Several major companies were making headlines on Friday, with Marvell Technology, Netflix, and Zscaler capturing investor attention, as discussed on a Yahoo Finance program.
Marvell Technology saw its stock dip even though the company reported a hefty 76% revenue increase in its AI data center business. Its guidance also met Wall Street’s expectations.
However, the chip maker’s automotive sector, which accounts for about 15-16% of its business, experienced a 12% drop in the quarter. Market strategist Lou Basenese noted Marvell’s strong AI and interconnect exposure but pointed to the automotive slowdown as a drag. He suggested that any buying opportunity would hinge on valuation and a potential rebound in the auto market.
Meanwhile, Netflix enjoyed a brighter spotlight. Analysts at Bank of America and Evercore ISI raised their year-end price targets for the streaming giant. Evercore specifically highlighted live events as a key catalyst for future growth.
Netflix’s stock has surged over 30% this year, trading near its all-time highs. Basenese acknowledged Netflix’s market leadership and called its move into live events “very smart” for differentiation. However, he expressed caution, citing the rising cost of multiple streaming subscriptions for consumers and Netflix’s high content production expenses, describing it as a “hamster wheel.”
Zscaler, a cybersecurity firm, saw its shares move higher. The company surpassed analyst expectations and its own guidance in its third-quarter results, and also boosted its full-year earnings outlook. The stock was up over 8% following the news.
An analyst from Jefferies raised his price target for Zscaler, commending it as the “first cyber company to execute well through April” amid broader market uncertainties. Basenese emphasized cybersecurity as a “forever growth trend,” given chronic underinvestment and the constant need to react to new threats.
He suggested that investors should have exposure to both cybersecurity and semiconductors. For those wary of picking individual stocks, he recommended ETFs as a way to gain broader exposure to these sectors, noting Zscaler’s success shows that effective solutions can thrive even in challenging markets.
