In March, I wrote in reference to MaxLinear (MXL)
that "the road from here to there isn't going to be straight or
smooth", but I didn't expect a crevasse to open up and swallow the
stock. MaxLinear's first quarter miss and guidance reduction were
arguably not as bad as the stock performance would suggest, but the
timeline for revenue acceleration seems to keep sliding, and management
credibility is potentially becoming an issue. The shares do seem
undervalued now, but with worries about a wider slowdown in
semiconductors, ongoing issues in optical, and delays in the revenue
ramp, this is going to be a challenging hold for the near term.
Read more here:
MaxLinear Hit Hard On Yet Another Reduction In Guidance
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