2 Stocks That Plunged on Oct. 29 to Buy and Hold Through 2030
One dropped on a takeover, the other on a contract outlook. Do their long-term targets make both stocks buys?
On October 29, two tech stocks experienced significant declines. Marvell Technology (MRVL) dropped around 13%, while ServiceNow (NOW) fell about 27%. Despite these drops, neither company has recovered, and both are trading at prices below their October 28 closing values. Marvell has since dropped to around $171, and ServiceNow is near $102, each priced at roughly 32% under their October 28 values.
Marvell's acquisition of Lumentum Holdings (LITE) was announced on November 2, with Lumentum valued at $115 billion at October 28 prices. This deal is expected to close in the first half of 2028 and result in Marvell shareholders owning about 67% of the combined company. Although dilution will occur, management expects the deal to boost non-GAAP earnings per share starting in the first year post-closure and generate over $1 billion in annual cost savings.
ServiceNow's third-quarter results were strong, with subscription revenue up 21% year-over-year to approximately $3.99 billion. However, the stock fell due to a reduction in the fourth-quarter growth guidance from 21% in constant currency to 18.5% for the fourth quarter. Despite this, management remains optimistic about future growth, with a subscription revenue target of over $30 billion by 2030 and current free cash flow margin at 36%.
The company believes that AI contract value will reach $1.7 billion by 2026, up from the initial $1 billion forecast.
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