By coinnews 
00:00 Speaker A
Now time for some of today’s trending tickers. This morning, we’re watching Marvell, Netflix, and Zscaler. First up, Marvell’s earnings were not strong enough to impress the street. The chip maker delivering earnings and guidance in line with expectations. Marvell reporting 76% revenue growth in its data center segment, really mirroring this idea that we have heard throughout this earnings cycle of data center revenue being a lift to these companies. Lou, I want to bring you in on Marvell. We were just talking about how you approach some of the chip sector names. Would you be a buyer of Marvell on this dip?
00:40 Lou
Marvell’s really interesting because they do have good exposure to the AI growth trend in the data center, right? They also have a segment that’s growing fast in interconnects. We think about the AI as just compute power, but it’s also moving that data around. So, Marvell’s got exposure there. The drag is the automotive sector. They have about 15, 16% exposure there, and it was down 12% in the quarter. That’s where I look at chips now is like there’s a company that I love that’s undervalued, NXP PI, but they have really big exposure to automotive as well. So, you have to, if you’re a buyer here, it’s got to be on valuation and hope that the automotive sector picks back up in the end of the year. So, I think the fundamentals are there if we can get through the trade wars, maybe, but that’s on Friday. We don’t know what happens by Wednesday.
01:41 Speaker A
Exactly. No, very well said, as always. Let’s also talk about Netflix getting a pair of price target bumps from BofA and Evercore ISI. Evercore citing the company’s live events as a key growth catalyst. The stock rocketing higher this year, up over 30%, trading near all-time highs, still above 1100, approaching $1,200 a share for Netflix, which is just crazy. Um, and Lou, I just wonder how you’re thinking about Netflix. I get mixed opinions when I talk to people about it.
02:20 Lou
Yeah, I’ve never chased Netflix. For me, the great unbundling to these streaming services has now gotten more expensive because the average person has a household has four subscriptions, and they’re paying more than traditional cable used to be. Um, Netflix has been a huge consumer of capital, too, to produce content. So, for me, it’s just it’s a hamster wheel to nowhere. It’s subscriber growth. It’s just for me, there’s better opportunities in the market. Um, that being said, Netflix is the undeniable leader here. I think the move into live events is very smart. It’s a way to differentiate outside of, you know, because everyone’s generated really good, compelling content on their own platforms, whether it’s Hulu, Netflix, um, HBO, it doesn’t matter. Everyone’s gotten really good at that. So, this is something that is giving them the next leg of growth. Um, but I have a hard time trying to chase it up here at $1,200, $1,200 a share almost. Maybe a split is in order, maybe I’d think differently. Following suit of Nvidia and make it more affordable.
04:01 Speaker A
All right, well we’ll pull that quote back when we get that stock split at some point. Finally here, let’s talk about Zscaler, defying the slump in the cyber security earnings this quarter, topping analyst expectations and its own guidance in its Q3 results. Jefferies analyst raising his price target on the back of the report saying Zscaler is quote “the first cyber company to execute well through April as macro uncertainty has weighed on competitors in the space,” and you see the stock up over 8%.
04:41 Lou
Yeah, I think as investors longer term, if you’re not focused on this week or this quarter, there’s two trends you have to be exposed to. It’s cybersecurity because we’ve criminally underinvested in it, and we’re always reacting. We can never get ahead of the threats. Um, so I think it’s encouraging to see here, if you look at hiring trends, spend on cyber security, they’re all going in the right direction for this to be what I’d call a forever growth trend because we’ll never get in front of it. But then the other one is semiconductors. So, I think these out of the two, you know, call it 10 big tech trends that are out there, whether it’s EVs, AI, I think you’ve really got to be wed in your portfolio to cyber in some way. There’s no silver bullet solution though, so I don’t I don’t advocate buying an individual name because there’s no one company that can protect against everything. So, an ETF like HACK was the oldest cyber ETF is a great way to get exposure. Same thing with semiconductors. If you don’t want to deal with the little nuances of who has auto exposure or not enough AI, you play the ETFs like SMH, and you tactically allocate on dips. So, I think really good opportunities coming up here. This is proving it out. Zscaler’s showing even in a tough market, the right solutions will work in cyber security.
06:27 Speaker A
Great overview, Lou. Thank you so much. Appreciate it. And also, you can scan the QR code below to track the best and worst performing stocks with Yahoo Finance’s Trending Tickers page.