Why Marvell Technology Stock Just Dropped
Marvell Technology stock fell 5.3% after reports that it canceled a purchase from Poet Technologies due to the latter's premature disclosure of the deal. Poet Technologies' stock plummeted 45% following the news that all purchase orders from Celestial AI, a company acquired by Marvell, were canceled.
Marvell Technology stock tumbled 5.3% after a feud with Poet Technologies came to light. Poet had announced a significant sale to Marvell's subsidiary Celestial AI, but Marvell subsequently canceled the purchase orders due to Poet's public disclosure, citing a breach of confidentiality. Poet Technologies' stock dropped 45% as a result. Marvell is saving the money it would have paid to Poet and has distanced itself from an unreliable partner. Marvell's stock is now selling at 53 times earnings with a 36% projected growth rate and a 1.5 PEG ratio, potentially making it a buying opportunity.
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