Broadcom AVGO Drops 5.2% Amid Insider Selling, VMware Changes

On April 16, 2025, Broadcom's stock experienced a 5.2% drop in pre-market trading, reflecting investor concerns and market sentiment.

Broadcom recently disclosed internal trading activities involving its executives. Mark David Brazeal, a high-ranking executive, sold 25,000 shares on April 11, 2025. This significant sale by an insider could indicate a lack of confidence in the company's near-term prospects, potentially contributing to the stock's decline.

Additionally, Broadcom's recent changes to its VMware product line have sparked mixed reactions. After acquiring VMware, Broadcom shifted ESXi 7.x and 8.x free versions to a subscription model, which drew criticism from users. However, the company's latest release of VMware ESXi 8.0 Update 3e, now named VMware vSphere Hypervisor, offers a free version with a permanent license. This move aims to lower the entry barrier for virtualization technology, particularly for individuals and small businesses. The new version includes limitations, such as a cap of 8 vCPUs per virtual machine and support for VMFS and NFS storage types. Users can download this version from Broadcom's official website without needing a paid subscription or additional authentication, demonstrating the company's responsiveness to community feedback.