The stock market closed mixed on Monday, with S&P 500 and Nasdaq closing lower as investors continued to reduce exposure to AI and technology stocks.
Lumentum (LITE) stock declined 15% following the announced acquisition of Marvell Technology (Marvell), as investors assessed the transaction’s valuation and risks.
Overall, S&P 500 fell 0.5% to 7,541, while Nasdaq dipped 1.1% to 25,164.
Chart of the Day
Here is the ten-year chart of Lumentum (LITE) as of October 21, 2026, when the stock was at $849.
On November 2, 2026, Marvell has agreed to acquire Lumentum in a massive $115 billion deal. However, the transaction is stock-for-stock, with no cash payment for Lumentum’s common shareholders. And with closing expected only in the first half of 2028, Lumentum’s shareholders face considerable exposure to Marvell’s share-price movements.
David Sharek, Founder of School of Hard Stocks, would hold LITE stock until next year, with 20% upside for 2027 at $1018.
LITE is part of the Growth Portfolio and Focus List.
