Afternoon update

$LITE fell 16.57% and Marvell 10.68% this afternoon as investor skepticism grew over Marvell's $115B all-stock acquisition of Lumentum.

• Lumentum closed at $701.43 ($62.9B market cap). The deal, valued at $115B by enterprise value, gives Marvell shareholders 67% of the combined company and is expected to close in H1 2028. Shares have fallen sharply since talks surfaced.

• Marvell slid to $175.43 ($152.9B) as investors questioned whether it is overpaying and taking on too much at once in its race with Broadcom for AI data-center optical and custom-chip business.

• IDEXX rose 20.28% to $663.02 after Q3 non-GAAP EPS of $3.96 beat by $0.25 and revenue of $1.21B grew 10%. FY26 revenue guidance rose to $4,741-$4,767M on higher diagnostic use.

• Tempus AI gained 9.97% to $79.42 on revenue of $411.5M, up 23.1%, and adjusted EBITDA of $25.6M versus $1.5M a year ago. Rivian added 9.75% after UBS upgraded it to Buy with a $17 target.

• Indices held flat: S&P 500 +0.13% at 7590.16, Nasdaq -0.12% at 25406.43.

Historically, Lumentum has been higher one year after 83% of its seven -16% drops, with a median gain of +77.7%. The open question is how much a pending $115B merger changes that pattern.

Not financial advice. For informational and educational purposes only.