Broadcom’s Stock Whiplash
6/4/202630 min
It seems like no matter the size of a company, it is possible we’ll see a double-digit percentage move in its stock on an earnings release. Today, it was Broadcom's turn to drop nearly 15% after the company reported what look like solid numbers. But when it comes to quarterly earnings, it’s all about the expectations game. Today’s move was clear that expectations are high for AI. Plus, stocks bucking their sector trends and how these mega IPOs will impact indices. Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:
- Broadcom’s good earnings
- Playing the expectations game in a volatile market.
- Stocks doing well in downtrodden industries
- Listener questions: How will the Spacex, Anthropic, and OpenAI IPOs impact cash on the sidelines and ETFs? Companies discussed: AVGO, NVDA, TSMC, RHP, XPO, ODFL, OSCR Host: Tyler Crowe Guests: Matt Frankel, Lou Whiteman Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement.We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode.Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices
Clips
Transcript preview
First 90 secondsTyler Crowe· Host0:00
[upbeat music] We've got Broadcom stock whiplash today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime Fool contributors Lou Whiteman and Matt Frankel. Today we were gonna do a little-- kind of mix it up a little bit. We thought we were gonna do a bunch of different segments and, you know, do some basically non-earnings takes because it's June. We don't normally get a lot of earn-- surprise earning stuff. But then Broadcom had to go and give its earnings, and now its stock's down, I think almost fifteen percent as we are taping today. As we're gonna get into it, I'll let you guys really digest the numbers here. But, uh, by all objective metrics, all the numbers looked good. The guidance looked fine. Ag- Is this really just expectations game, Lou?
Lou Whiteman· Guest0:48
Yeah, I think it is. Expectations are everything, right? It's glass half full, glass empty. Stock's up fifteen percent just heading into earnings. When you get that sort of expectations, any s-slight hiccup, any slight sneeze can set you back. This was a slight miss on revenue, but, you know, look, it's brutal when people are expecting enough. Apparently it was enough to outweigh a hundred and forty percent gains in AI semiconductor s-sales, which I don't know, Tyler, sounds pretty okay to me.
Tyler Crowe· Host1:18
Yeah, Matt, you were the-- kinda tasked a little bit more with the, the nitty-gritty of the numbers here. What, what did you see in this that was like maybe not great? I, I don't know. It's, it's, it's kinda hard to