On August 28, Marvell Technology declined 7.4% overnight, trading at $223.32/share, with turnover of $653,800. The stock fell sharply despite reporting Q2 results and Q3 guidance that both exceeded Wall Street estimates, as the modest beat failed to justify the stock's 184% year-to-date rally.

Marvell reported fiscal Q2 adjusted EPS of $0.94, slightly above the consensus estimate of $0.92-$0.93, on revenue of $2.739 billion versus expectations of $2.71-$2.72 billion, representing 37% year-over-year growth. Data center revenue surged 46% year-over-year to $2.2 billion, serving as the primary growth engine. The company guided Q3 revenue to $3.15 billion with adjusted EPS of $1.10, both above consensus of $3.03 billion and $1.08 respectively. The CEO projected fiscal 2027 total revenue growth of approximately 45% to around $12 billion.

However, in the week preceding the report, Wells Fargo, HSBC, UBS, and Susquehanna had aggressively raised price targets, pushing shares up over 10%. With expectations already fully priced in, the limited upside surprise triggered a classic sell-the-news reaction.

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