Marvell Technology, Inc. (MRVL) is gearing up for its earnings release tomorrow. The stock dropped 12% this week, but short interest jumped 15%. Despite a predicted 2% dip from price trends, a steeper short interest slope hints at a 14% rally. This points to a net 12% gain, though volatility is expected.

Marvel Moves Ahead of Earnings in a Bullish Pattern

MRVL is set to report earnings tomorrow, before the market close.

In the past week, MRVL has seen two significant movements: the stock has dropped by 12%, while short interest has risen by 15%.

Despite the drop, the stock's price action suggests a low predictive slope, indicating a potential 2% decline.

However, the short interest slope is steeper, suggesting a 14% rally. The net effect of these two factors is an expected increase of 12%.

Historically, MRVL tends to move around 11% on earnings announcements in either direction, so significant volatility is possible.

The stock and short interest have been moving in opposite directions, with short interest rising as part of a momentum-based strategy while the stock price declines.

Marvell Technology, Inc. (MRVL) exhibits a compelling setup as earnings approach. The 12% stock decline contrasts with a 15% rise in short interest, yielding a projected 12% increase. Historical 11% earnings-driven swings underscore potential volatility. These dynamics reflect opposing forces—declining price and rising shorts—positioning MRVL for a notable move.

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