Marvell Technology shares fall on valuation concerns

Marvell Technology shares dropped 4.2% in morning trading on Monday, moving from an opening price of $274.71 to $263.77. The decline follows continued investor assessment of the company's fiscal 2028 revenue target announced at its October 6 Investor Day.

Management set a goal of approximately $20 billion in total revenue for fiscal year 2028. This target represents roughly 56% annualized growth, prompting questions from some investors about execution in the near term.

Several analysts increased their price targets after the Investor Day presentation. Firms raised targets to a range between $340 and $450.

The stock trades at a price-to-earnings ratio near 90 times and a price-to-sales ratio above 25 times. This valuation level makes the shares more sensitive to changes in investor sentiment.

Justin Scarpulla, SVP and Chief Accounting Officer, sold approximately $300,949 in shares on October 8. Additional Form 4 filings appeared on Saturday and Monday.

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