Broadcom Earnings Disappoint

Bespoke Investment Group48.31K FollowersFollow5ShareSavePlay(3min)Comments(2)SummaryShares of Broadcom are having a rough go this morning after the company reported earnings after the close yesterday.Based on where AVGO stock is trading this morning, today would be just the 7th time since at least 2009 that the stock declined more than 5% on an earnings reaction day.Heading into today, AVGO has rallied over 275% since the start of 2024, making it the seventh best-performing stock in the S&P 500. Sundry Photography/iStock Editorial via Getty Images "Broadcom Suffers Worst Stock Drop Since 2020 on Slow Chip Sales" - Bloomberg "Tech Slides as Broadcom Adds to AI Disillusionment" - DJ "Broadcom sees dip in quarterly margins due to AI" - ReutersThis article was written byBespoke Investment Group48.31K FollowersFollowBespoke Investment Group provides some of the most original content and intuitive thinking on the Street. Founded by Paul Hickey and Justin Walters, formerly of Birinyi Associates and creators of the acclaimed TickerSense blog, Bespoke offers multiple products that allow anyone, from institutions to the most modest investor, to gain the data and knowledge necessary to make intelligent and profitable investment decisions. Along with running their Think B.I.G. finance blog, Bespoke provides timely investment ideas through its Bespoke Premium (https://bespokepremium.com/) subscription service and also manages money (https://bespokepremium.com/mm) for high net worth individuals. Visit: Bespoke Investment Group (https://bespokeinvest.com/)Quick InsightsWhat drove AVGO’s sharp post-earnings decline despite strong headline results?Investor concerns centered on management’s commentary about margins and backlog, which overshadowed the EPS and sales beats and raised guidance.How does AVGO’s 2024 performance contextualize recent earnings-related selloffs?Despite two major earnings-day declines in 2024, AVGO has rallied over 275% year-to-date, ranking seventh in S&P 500 performance.Are negative earnings headlines historically reliable signals for AVGO’s long-term trajectory?Past negative headlines have coincided with brief declines, but these are barely visible on the long-term chart, highlighting AVGO’s resilience.Recommended For You