Broadcom's Stock Takes a Hit Despite Strong Earnings

Published 1 hours agoAVGO

Broadcom's Stock Takes a Hit Despite Strong Earnings

Broadcom recently reported impressive first-quarter financial results, yet the company's stock saw a significant decline. Shares dropped by 10%, closing at $1,235 after previously reaching a record high of $1,438.17 on March 4, according to a Forbes report.

The tech giant's revenue surged by 34% compared to the previous year, reaching $11.96 billion and outpacing analyst predictions of $11.72 billion. Additionally, Broadcom achieved adjusted earnings per share (EPS) of $10.99, which exceeded consensus estimates of $10.40. AI-related revenue notably expanded, quadrupling to $2.3 billion and comprising 31% of the total semiconductor revenue.

Despite these achievements, Broadcom encountered challenges in its non-AI segments, with a 9% decline in non-AI semiconductor revenue, primarily linked to seasonal weaknesses in the wireless market. Furthermore, the company maintained its annual revenue forecast at $50 billion, which was below some investor expectations for an increase. Reuters also noted that the stock decline coincided with broader market trends, affected partly by a softer-than-anticipated August jobs report.

Share this article

Twitter Facebook LinkedIn

Recent Articles

AT&T to Acquire Lumen Technologies' Consumer Fiber Operations for $5.75 Billion

AT&T to Acquire Lumen Technologies' Consumer Fiber Operations for $5.75 Billion

10 minutes agoT

AT&T is set to acquire Lumen Technologies' consumer fiber operations in a $5.75 billion cash deal. This acquisition will add about 1 million fiber internet customers to AT&T's portfolio and expand its fiber network in major U.S. cities such as Denver, Las Vegas, and Seattle. The purchase aims to strengthen AT&T's foothold in the competitive U.S. fiber internet market. Lumen Technologies plans to leverage the proceeds from the sale to significantly reduce its debt by $4.8 billion. This strategic financial recalibration is anticipated to lower Lumen's annual interest expenses by over $300 million, providing the company with greater flexibility to concentrate on its enterprise fiber and low-latency technology sectors that are vital for modern tech applications like AI and multi-cloud systems. The transaction is expected to be finalized in the first half of 2026. Upon completion, the acquired assets will be organized under a new subsidiary, with AT&T planning to sell a minority stake in it. Following the transaction announcement, Lumen's shares jumped by 13% in after-market trading, signaling positive investor reception to the deal, as reported by Reuters.

Affirm and KAYAK's Partnership Remains U.S.-Exclusive

Affirm and KAYAK's Partnership Remains U.S.-Exclusive

25 minutes agoAFRM

As of May 22, 2025, the partnership between Affirm and KAYAK remains distinctly American. Originally formed in January 2023, this alliance identified Affirm as the exclusive pay-over-time provider for KAYAK within the United States. The union aimed to give travelers more flexible payment options when booking trips through KAYAK. In different territories, Affirm has been expanding its reach with various partners. Notably, in June 2024, Affirm teamed up with Alterra Mountain Company in Canada, marking a significant step in their Canadian collaborations. However, there's no clear indication that Affirm and KAYAK have looked north to expand their exclusive arrangement. Despite the broader growth of Affirm in regions such as Canada, the extension of its partnership with KAYAK remains confined to the U.S. landscape. These developments underscore Affirm's strategy to selectively grow its collaborative network, as information from Reuters suggests their focus may still be aligned with the initial terms of engagement with KAYAK.

UnitedHealthcare Under Scrutiny Amid Leadership Shakeup

UnitedHealthcare Under Scrutiny Amid Leadership Shakeup

40 minutes agoUNH

UnitedHealthcare, the largest insurance provider in the United States, is facing significant pressure following a series of troubling developments. The U.S. Department of Justice has launched a criminal investigation into the company's Medicare practices, specifically targeting the billing practices of its Medicare Advantage unit. This investigation comes on the heels of UnitedHealthcare's unexpected decision to withdraw its financial outlook and the sudden departure of CEO Andrew Witty, as Reuters reported. These issues have sparked a sharp decline in UnitedHealth's stock value, with shares plummeting 14% in a single day and suffering a 46% drop year-to-date. This stark decrease has brought the company's stock to a nearly five-year low, adding fuel to investor concerns about the company's trajectory amid these challenges. Adding to the company's troubles is its high rate of claim denials, where one in three claims is dismissed—twice the industry average. The Department of Justice is also scrutinizing UnitedHealth's proposed $3.3 billion purchase of Amedisys Inc., raising antitrust concerns. Meanwhile, the tragic shooting death of CEO Brian Thompson has resulted in further political and public scrutiny, especially following revelations that the ammunition used was labeled with references tied to the insurer's controversial practices.

DuPont Unveils New Resin for Biopharmaceutical Purification

DuPont Unveils New Resin for Biopharmaceutical Purification

55 minutes agoDD

DuPont has recently introduced a new resin aimed at enhancing biopharmaceutical purification, marking a significant expansion in its pharmaceutical product offerings. This development accompanies the company's efforts to increase production capacity for ion exchange resins, which are essential for the growing market demand for pharmaceutical products such as excipients and active pharmaceutical ingredients (APIs). In a move to bolster its manufacturing capabilities, DuPont has successfully completed the initial phase of expanding its cGMP pharmaceutical production facilities in Chauny, France. This expansion includes ongoing qualifications, with future phases designed to meet the high demand for excipient and absorbent products. DuPont's ion exchange resins are integral to a wide range of pharmaceutical applications, including drug formulations and advanced drug delivery systems. Furthermore, DuPont is committed to enhancing its regulatory resources to support the development of new applications and maintain the highest standards of product quality across different markets. This strategic initiative highlights DuPont's dedication to facilitating the growth of the pharmaceutical industry and catering to the evolving needs of its clients, as reported by sources like DuPont's website.