What was the reason that AVGO stock went down so much after they released their earnings postmarket

The decline of Broadcom Inc. (AVGO) stock after the release of its earnings report can be attributed to a combination of factors:

1. **Disappointing Q3 Guidance**: Although AVGO reported strong Q2 results, with a 20% year-over-year revenue increase to $15 billion, slightly exceeding analysts' expectations, the Q3 guidance fell short of some investors' hopes. The company projected Q3 revenue of approximately $15.8 billion, which, while exceeding analysts' average estimate, missed more optimistic forecasts by about $1 billion. This led to concerns about the sustainability of the AI-driven growth momentum.
2. **Profit-Taking and Market Optimism**: Following a significant surge in its stock price, which had grown by over 30% since March due to anticipated AI spending, Broadcom's stock experienced a natural pullback as investors engaged in profit-taking. This is a common phenomenon after a strong earnings report and bullish guidance.

In summary, the decline in AVGO's stock post-earnings can be attributed to a combination of the company's Q3 guidance falling short of expectations and natural profit-taking by investors.

|code|Ticker|Name|Date|Percentage Change|market_code|
|---|---|---|---|---|---|
|AVGO|AVGO.O|Broadcom|20250605|-0.44047801440170725|185|