Fisker (FSR) stock prices fell on news that the company is being sued for alleged violations of securities laws. Shares of Marvell Technology (MRVL) closed higher after a JPMorgan analyst had a positive exchange with the company’s CEO. Yahoo Finance’s Josh Lipton and Julie Hyman break down some of the afternoon’s trending stocks.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Stephanie Mikulich.
video transcript
Julie Hyman: Another stock we’re watching closely here is Fisker. And this is what we’ve been focusing on. The stock plunged 9% today to its lowest level ever. There are several new lawsuits related to securities law violations that are related to the sharp drop in stock prices that we are seeing. Investors who suffer losses are encouraged to try to recover their losses. This rarely happens. Such a steep decline leads to various lawsuits being filed.
But here’s some context: the stock price is down 80% in the last 12 months. And in fact, losses have been accelerating since the release of third-quarter results. At the time, the company also said it had discovered material weaknesses in its internal controls over financial reporting. The company has had various chief accounting officer changes, all of which contributed to the recent drop in stock price.
Josh Lipton: Yeah, so this lawsuit was just the latest headline and not what this EV startup needed. Because, like you said, the inventory is already messed up. It has fallen 80% in 12 months. Shelling is frequently seen. Maybe some people will move in. But I’m just looking here. If you look at the analyst covering this, he actually has 5 sells, 4 holes, and he has 3 buys. So even among the financial analysts who study this and are paid to study this stock and give advice, there doesn’t seem to be much optimism. I’m not very optimistic, but I think better times are ahead. The stock is currently trading below $2.
Julie Hyman: Yeah.
Josh Lipton: In the meantime, grab one last Marvel stock. The trend is on the upswing after the company met with JPMorgan today. Analysts at the bank said the company’s semiconductor AI revenue has far exceeded prior expectations. This is interesting, Julie. Basically, listen to JPMorgan, they’re overweight. That means they have something to buy.
And the bottom line is, they talked to Marvel CEO Matt Murphy, they liked what they heard, and after that meeting they said they had AI demand in the pipeline, revenue visibility continues to expand, and expectations. This means that we have clearly communicated to the client that we are exceeding the Just a few quarters ago.
Julie Hyman: Yeah. The company also stated that it has a diverse product lineup in its data center business, which accounts for approximately 50% of sales. Data centers are said to be strong here because they also focus on the AI that feeds into them. Marvell was one of the stocks that definitely participated in last year’s chip rally. The stock price rose 63% last year.
And even though we’ve seen this decline in some chipmakers in recent days, Marvell was actually up not only today but yesterday as well. Again, this theme is OK. What I’m focused on this year is who will benefit from AI and where will we put our money? I feel like a lot of people are making that assessment and trying to figure it out right now. Outside.
Josh Lipton: Marvel has given us so much love and so much on the road these past 12 months.
Julie Hyman: Yeah.
Josh Lipton: surely.