Here’s A Tech Stock That Beat Coronavirus Selloff And Gained Nearly 30% In One Week

Despite a sharp market selloff that saw the U.S. benchmark index S&P 500 correct more than 15% in two weeks, shares of Marvell Technology Group (NASDAQ:MRVL) have gained around 30% in the last week on better-than-expected earnings.

Fundamental analysis: Networking and storage businesses shine

Marvell, a producer of storage, communications, and consumer semiconductor products, reported its fiscal fourth quarter results that beat analysts’ estimates after it reported adjusted earnings of $0.17 per share compared to $0.16 per share expected. The California-based company generated $718 million in sales, higher than $713 million expected from Wall Street.

For this quarter, the company said it expects adjusted earnings of $0.14 per share on sales of $680 million, again higher than adjusted earnings of $0.13 per share on sales of $675 million.

Marvell said that the expected impact from the coronavirus outbreak is approximately 5% of revenue, which was taken into account for Q1 projections.

Technical analysis: Swimming upstream

Shares of the company trade around 16% higher, despite another difficult week for the stock market after the failure to recover previous losses. Positive earnings have made the Marvell stock price almost immune to the selloff.

The stock price printed a record high in mid-January before the broader market selloff pushed the price lower. However, a positive earnings report helped the stock price rebound higher.

As seen in the chart above, the stock price trades well above the weekly low. In case of an improvement in the risk appetite, the Marvell stock is well-positioned to continue moving higher.

Summary

Marvell stock price trades 16% higher despite the broader market selloff. A positive earnings report has helped the shares recover from the initial move lower, as the company looks to be in a solid position for a move higher, if the risk appetite improves.