On August 28, Marvell Technology fell 8.93% in pre-market trading, trading at $221.47/share, with turnover of $21.27 million.

The decline followed the company's fiscal Q2 earnings report released after the prior session's close. Marvell posted adjusted EPS of $0.94, slightly above the $0.92-$0.93 consensus, while revenue of $2.739 billion grew 37% year-over-year, beating the $2.71 billion estimate. Q3 guidance of $3.15 billion in revenue and $1.10 adjusted EPS also exceeded Wall Street expectations of $3.03 billion and $1.08, respectively. Data center revenue surged 46% year-over-year to $2.2 billion, driving the overall results.

Despite the double beat, the magnitude of outperformance was limited. In the week preceding the report, Wells Fargo, HSBC, UBS, and Susquehanna had aggressively raised price targets, pushing the stock up over 10%. Combined with a 184% year-to-date gain, the market had fully priced in an earnings beat, resulting in a classic sell-the-news reaction.

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