Why MaxLinear Shares Went Parabolic Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of MaxLinear (NYSE: MXL  ) have been rising throughout the day, and currently sit on an 18% gain after investors responded in an overwhelmingly positive way to the company's strong second-quarter earnings report released yesterday afternoon.

So what: MaxLinear's revenue came in at $29.8 million for the second quarter, a 22% year-over-year improvement and ahead of the $28.5 million Wall Street consensus. Earnings of $0.11 per share trounced the Street's $0.06 consensus. MaxLinear now expects revenue in the $31 million to $32 million range for the third quarter, which is a much smaller year-over-year increase (between 4% and 7%).

Now what: Investors have been excited about this stock all year, but today's pop only puts the exclamation point on that interest. MaxLinear's shares have gained 60% since the start of 2013, which is far better than the 6% growth in trailing-12-month revenue that the company has recorded over the same period. Tread carefully here. The market might be getting a little ahead of itself.

Want more news and updates? Add MaxLinear to your watchlist now.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2576812, ~/Articles/ArticleHandler.aspx, 12/19/2014 6:53:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement