Growth Stocks Navigate Volatility as Marvell, Block, DraftKings Shine

Growth stocks have shown resilience amid global trade tensions. The S&P 500 Growth index's performance hints at potential value, particularly in Marvell Technology, Block, and DraftKings, despite economic uncertainty.

Date: 08-06-2025

AI Rating: 7

**Navigating Growth Amid Volatile Markets**
In the recent report, the S&P 500 Growth index exhibited signs of outperformance compared to the broader S&P 500 index despite ongoing global trade tensions and economic uncertainties. This resilience is significant for investors seeking opportunities in growth stocks that have seen considerable market volatility.

The report highlights three companies: Marvell Technology, Block, and DraftKings, each presenting unique investment opportunities and challenges. Marvell stands out due to its involvement in the generative AI sector, having secured orders from major players like Amazon and Microsoft for custom AI accelerators. With a current stock price of around $65 and a forward P/E ratio of 23, the valuation appears promising given the growth prospects associated with AI hardware. This positions Marvell favorably in the semiconductor market, though investors should remain aware of the risks tied to customer concentration.

Block, the operator of Cash App and Square, faces some short-term challenges reflected in its recent shortfall in gross profit growth. Still, its innovative approaches to enhance the user experience, such as the new Cash App Borrow service, could help drive revenues in the long term. The company's stock is currently at $63 with a forward multiple of 16.5, suggesting investors might find value despite the anticipated dip in earnings for the year.

DraftKings has been acquiring a robust user base amid growing competition in the sports betting arena. Although it faces regulatory hurdles, particularly regarding taxation, the ability to leverage valuable user data can impede competitors' efforts. The stock price at $34 indicates an enterprise value-to-forward-EBITDA ratio of about 21, which could be deemed attractive given management's ambitious growth forecast of 35% average EBITDA growth for 2026 to 2028. Regulatory shifts in states like Illinois could present challenges, yet DraftKings appears better positioned to absorb such costs than its smaller competitors.

These insights reveal that while growth stocks are navigating challenging waters, careful analysis of individual company fundamentals could yield favorable investment opportunities. Investors should continue monitoring key growth indicators and remain vigilant about valuation to make informed decisions going forward.

Stocks: MRVL XYZ DKNG