AVGO Stock Crash: Key Reasons Behind Broadcom's Decline
Significant Earnings Report Sparks AVGO Stock Decline
Broadcom (NASDAQ: AVGO) experienced a steep drop in stock price, falling 9.38% to $138.49 after an earnings report. Although revenue surpassed expectations at $13.07 billion, the company posted a shocking net loss of $1.875 billion, far below last year's profits.
Investor Sentiment Switches to Negative
The weak guidance for future quarters, estimating $14 billion in revenue versus analysts' expectations of $14.11 billion, further unsettled investors. Despite these challenges, Broadcom's upgraded AI revenue projection to $12 billion may offer some hope.
Analysts Maintain Positive Outlook on AVGO
Despite the backlash, analysts maintain a 'buy' rating for AVGO, with a predicted price target averaging at $193.38. Notably, Broadcom is rated positively with no 'sell' recommendations reported.
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