Would You Still Hold Marvell Technology Stock If It Fell Another 30%?
Marvell Technology (MRVL) stock is down 10.5% in 5 trading days. The recent slide reflects renewed concerns around AI chip valuation and persistent softness in non-data center segments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Marvell Technology stands today.
- Size: Marvell Technology is a $72 Bil company with $7.2 Bil in revenue currently trading at $83.45.
- Fundamentals: Last 12 month revenue growth of 37.1% and operating margin of 6.0%.
- Liquidity: Has Debt to Equity ratio of 0.07 and Cash to Assets ratio of 0.06
- Valuation: Marvell Technology stock is currently trading at P/E multiple of -696.2 and P/EBIT multiple of 700.9
- Has returned (median) 32.7% within a year following sharp dips since 2010. See MRVL Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell MRVL Stock
That brings us to the key consideration for investors worried about this fall: how resilient is MRVL stock if markets turn south? This is where our downturn resilience framework comes in. Suppose MRVL stock falls another 20-30% to $58 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- MRVL stock fell 62.1% from a high of $91.51 on 7 December 2021 to $34.68 on 5 January 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 November 2024
- Since then, the stock increased to a high of $126.06 on 23 January 2025 , and currently trades at $83.45
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -62.1% | -25.4% |
| Time to Full Recovery | 672 days | 464 days |
2020 Covid Pandemic
- MRVL stock fell 39.5% from a high of $28.49 on 17 January 2020 to $17.25 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 May 2020
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.5% | -33.9% |
| Time to Full Recovery | 63 days | 148 days |
2018 Correction
- MRVL stock fell 40.9% from a high of $24.37 on 12 March 2018 to $14.41 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 April 2019
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -40.9% | -19.8% |
| Time to Full Recovery | 114 days | 120 days |
2008 Global Financial Crisis
- MRVL stock fell 77.1% from a high of $20.88 on 10 January 2007 to $4.78 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 January 2010
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -77.1% | -56.8% |
| Time to Full Recovery | 410 days | 1480 days |
Feeling jittery about MRVL stock? Consider portfolio approach.
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