Stocks of the Week: Keurig Dr Pepper Plunges, Marvell Down 17%, MongoDB Surges

Keurig Dr Pepper shares plummeted 17% last week after announcing a $17.2 billion acquisition of JDE Peet's and plans to separate into two independent companies. HSBC downgraded KDP to Hold from Buy, citing a high acquisition cost and leverage. Marvell Technology shares dropped 17% despite posting in-line earnings and revenue. MongoDB shares surged 47% after beating consensus expectations and providing strong Q3 and full-year guidance.

Last week, the stock market witnessed significant fluctuations following key announcements by Keurig Dr Pepper (KDP) and Marvell Technology (MRVL). KDP's shares plummeted 17% after the company announced its $17.2 billion acquisition of JDE Peet’s and plans to split into two independent companies. Meanwhile, Marvell Technology shares dropped 17% despite posting in-line earnings and revenue. Conversely, MongoDB shares surged 47% after beating consensus expectations and providing strong Q3 and full-year guidance.

Keurig Dr Pepper’s stock fell 17% following the acquisition announcement, with the overall wipe-off of value amounting to about $8 billion. The company expects to save approximately $400 million as a result of the merger, but the acquisition cost has raised concerns among investors [1]. The S&P 500, in comparison, fell just 0.4% on the same day. The acquisition is expected to close in the first half of 2026, with the separation of KDP's business into a U.S.-based cold beverage entity and a Europe-focused coffee business [1].

Marvell Technology shares dropped 17% in pre-market trading on Thursday, August 28, following the company’s forecast for Q3 revenue below estimates. Despite strong Q2 earnings, which included a 58% year-over-year increase in revenue and a 69% increase in the data center segment, the company’s Q3 outlook reflects broader economic uncertainty and tariff concerns. Marvell expects Q3 revenue of $2.06 billion, indicating a potential slowdown in growth compared to the Q2 performance [2].

MongoDB, Inc. (NASDAQ: MDB) reported strong Q2 fiscal 2026 financial results, with total revenue up 24% year-over-year (YoY) and MongoDB Atlas revenue rising by 29%. The company added 5,000 customers YTD, the highest ever in the first half. MongoDB's Q3 and full-year fiscal 2026 guidance also exceeded expectations, leading to a 47% surge in its stock price [3].

HSBC downgraded KDP to Hold from Buy, citing a high acquisition cost and leverage. Despite the downgrade, KDP remains committed to the acquisition, aiming to create a combined coffee business generating $16 billion in annual revenue [1].

Investors should closely monitor Marvell's strategic initiatives and performance to identify potential long-term growth opportunities. The company's focus on AI infrastructure and 2nm custom silicon technologies has differentiated it from competitors and positioned it as a key player in the AI-driven infrastructure sector [2].

References:
[1] https://www.gcrmag.com/keurig-dr-pepper-stock-falls-following-jde-peets-acquisition/
[2] https://www.ainvest.com/news/marvell-technology-shares-drop-11-pre-market-company-forecasts-q3-revenue-estimates-2508/
[3] https://www.ainvest.com/news/mongodb-stock-surges-38-strong-earnings-outlook-valuation-concerns-persist-2508/