How Bad Is It For Microchip (Nasdaq: MCHP), Warner Bros (Nasdaq: WBD) and Marvell (Nasdaq: MRVL) Right Now

With tariff uncertainty, markets just gave back most of the day from yesterday’s historic rally.

Last checked, the Dow was down about 1,500 points, or 3.6% on the day. The NASDAQ gave up about 880 points, or 5.2% as the S&P 500 plummeted 246 points, or 4.5%. That’s because even with the reprieve, economic activity will slow considerably with our 145% tariffs on China.

Leading the declines, Microchip (NASDAQ:MCHP) lost about 15%. Warner Bros. (NASDAQ:WBD) dropped 13%, with Marvell Technology (NASDAQ:MRVL) giving back 13% on the day.

Microchip 

Down about 15%, or $6.67, Microchip is struggling at lows last tested in late 2020.

While it’s getting dragged lower by the overall market, it’s also getting knocked down with financial challenges. That includes a substantial decline in revenue year over year, and a net loss of about $53.6 million in its most recent quarter.

In its third quarter, the company’s. EPS of 20 cents missed by eight cents. Revenue of $1.03 billion, down about 42% year over year missed expectations by $20 million. Not helping, it’s seeing reduced demand in key sectors, while carrying a substantial debt load of more than $6.75 billion. Plus, with the latest tariffs, chip stocks have been in free fall.

Warner Bros. 

Down about 13%, or $1.90, Warner Bros. isn’t having a great day either.

While a 90-day tariff pause was helpful, the aggressive 145% tariffs on China aren’t helping. Unfortunately, as noted by the China Film Administration, “The wrong move by the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films.”

Not helping, the company still holds a substantial debt of $34.6 billion. Plus, recent earnings were nothing to write home about. Its EPS loss of 20 cents missed estimates by 23 cents. Revenue of $10.02 billion, down 2.5% year over year, missed by $140 million.

Marvell Technology

Marvell Technology rocketed 22% higher just yesterday.

For one, Infineon announced it would buy Marvell’s automotive ethernet business, which is expected to produce $225 million to $250 million in sales this year for about $2.5 billion.

Two, Marvell recently authorized an additional $3 billion increase to its stock buyback program. Plus, it announced a dividend of six cents per share, which is payable on May 1 to shareholders of record as of April 11.

Today, unfortunately, MRVL gave back 13%, or $8.11 on China tariff uncertainty. Analysts at TD Cowen also lowered their price target on MRVL to $60 from $95.

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