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Broadcom's Stock Plunges 10.55% Amid Bearish Signals Despite Bullish Long-Term Outlook

Mover TrackerWednesday, Dec 18, 2024 5:36 pm ET
1min read

Recently, Broadcom (AVGO) has experienced significant volatility in its stock performance. Over the past two days, the stock has fallen by a cumulative 10.55%, which included a notable 6.91% decline on December 18. As of December 19, the stock saw a significant downturn of 5.01%, with a current trading price at $228.20 per share.

Broadcom, as one of the largest semiconductor companies globally, has diversified its business into various software ventures. Its annual revenue has surpassed $30 billion, primarily from the sale of its 17 core semiconductor product lines to markets including wireless, networking, broadband, storage, and industrial sectors. The firm operates mostly as a fabless design company, with some in-house production such as the high-performance FBAR filters used in Apple iPhones. In terms of software, its portfolio includes enterprise solutions, financial institution support, as well as government infrastructure and security applications.

Recent financial reports reveal that Broadcom's revenue reached $515.74 billion, with a net income of $61.68 billion and an earnings per share of $1.27. Analysts' overwhelmingly bullish outlook is reflected in the data, where 87% of evaluating institutions recommend a buy, while the remaining 13% suggest holding.

In a recent report, Broadcom's future outlook appears optimistic, with a noted increase in their long-term AI business trajectory and higher profit growth forecast for VMware. This has prompted a significant revision in projections, with a 4% and 11% increase in per-share earnings estimates for the 2025 and 2026 fiscal years, respectively, to $6.4 and $7.95. The company’s AI initiatives and strategic expansions into various tech domains continue to position it favorably within the industry.

On the technical analysis front, Broadcom's stock has generated concern with its MACD indicator signaling a bearish cross, often viewed as a risk signal by traders. Historically, such technical indicators have heightened caution among investors, prompting closer scrutiny of its future market performance.

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pimppapy
12/19
One terrible day in the markets, and everyone is freaking out. But remember, the markets are a marathon, not a sprint. You're up against some of the best minds in the world, competing 24/7/365. There are no rules, just misdirection everywhere, more players than ever, scams, tricks, and noise all around. So, buck up, kiddos, and get ready for a wild ride. Journal, share, plan, and expect to get punched in the face, no matter how smart you are. Get used to it and stay in the game. Oh, and being nice doesn't hurt either. Find your peloton and draft the best way to do that is by not trolling people. $AAPL, $QQQ
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mayorolivia
12/19
Starting from tomorrow, $AVGO is going green!
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Legend27893
12/19
$AAPL has dropped back to the price it was four days ago.
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Nobuevrday
12/19
$AVGO check out this video: https://youtu.be/QZqBB849AoI?si=Pj5pya-FQc68C8pu
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cfeltus23
12/18
$AVGO just bought calls. I'm doubling down tomorrow, because I have a feeling that the stock is going to rise soon.
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