Markets are punishing three technology stocks after they posted quarterly earnings. They expected more but the firms did not meet expectations.
MongoDB (MDB) will open down by at least 15%. The database firm posted revenue growth of 20% in the fourth quarter, to $548.4 million. However, the outlook for Q1 and the full year is below expectations. Traders who sold the stock beforehand may add back to the position at lower prices.
Marvell Technologies (MRVL) may trade lower by 15% this morning. The firm posted Q4 EPS of $0.60. Revenue of $1.82 billion is up by 27% Y/Y, thanks to data center sales. Although its guidance topped estimates, MRVL stock fell in after-hours trading. Value investors may start a small position if the stock trades in the $60 – $70 range.
CrowdStrike (CRWD), a cybersecurity firm, may struggle to break out above its $455.59 high. The firm increased revenue by 25.4% Y/Y to $1.06 billion in Q4. Subscription revenue increased by 31% Y/Y to $3.76 billion. The healthy growth will continue. Cybersecurity demand has long-term momentum compared to artificial intelligence projects. Moreover, this firm will likely apply AI solutions to strengthen its product.
Cyberattacks will continue to grow. Corporations will increase their demand for CrowdStrike solutions.
