Broadcom's murky guidance overshadowed the company's top-line beat
Semiconductor stock Broadcom Inc (NASDAQ:AVGO) is down 9.1% to trade at $138.97, after the company reported worse-than-expected revenue guidance for its fiscal fourth quarter, overshadowing top- and bottom-line beats for the third quarter.
In response to the results, Morgan Stanley raised its price target to $180 from $176, while Truist Securities adjusted lower to $204 from $204.50. Coming into today, the 12-month average target price of $194.64 was a 35.7% premium to last night's close, while 29 covering brokerages rated AVGO a "strong buy," and three recommended a tepid "hold."
The stock is pacing for its worst weekly decline since March 2020, and its worst single-session percentage loss since March 2024. Now set to close below its 140-day moving average for just the second time in roughly two years, AVGO sports a 12.4% quarter-to-date deficit.
At last check, 89,000 calls and 80,000 puts have crossed the tape, volume that is nine times the intraday average. The January 17, 2025 170-strike call is most popular by a wide margin, followed by the weekly 9/6 140-strike put, where new positions are being bought to open.