1 Lesson Investors Should Take Away From Broadcom's Latest Earnings
Broadcom's strong earnings weren't quite enough for an unquenchable Wall Street.
1 Lesson Investors Should Take Away From Broadcom's Latest Earnings
Overview
Usually, when a company posts record revenue, it's good news for the stock and its shareholders. Unfortunately, this was not the case this week when Broadcom (NASDAQ: AVGO) announced its latest earnings. Despite beating Wall Street's expectations and posting truly impressive growth, the stock sank because it missed analysts' earnings-per-share "whisper number," or the informal consensus, by a slim margin.
The lesson for investors is, once again, that short-term noise should largely be ignored. Long-term fundamentals still matter, and a decrease in a stock's price based on hype or noise is nothing more than an irrational overreaction. Broadcom's fundamentals remain incredibly strong.
Details
Broadcom's revenue grew 48% year over year, and its artificial intelligence (AI) semiconductor revenue exploded by 143%, with another $30 billion in bookings.
Source
Originally published at www.fool.com.
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