All three major US stock indexes were edging lower in midday trading on Friday as Broadcom's (AVGO) quarterly results deepened fears of tech overvaluation.
Broadcom shares declined 11% in recent trading after Chief Financial Officer Kristen Spears said in a conference call that the company expects "Q1 consolidated gross margin to be down approximately 100 basis points sequentially, primarily reflecting a higher mix of AI revenue," according to a transcript. Broadcom reported fiscal Q4 results late Thursday, topping estimates, and issued fiscal Q1 outlook.
In other company news, Cannabis stocks, including Tilray Brands (TLRY), rose after the Washington Post reported that US President Donald Trump seeks to "dramatically loosen" restrictions on marijuana. Trump is expected to sign an executive order to reclassify marijuana as early as Monday, CNBC reported. Tilray Brands shares climbed 29% in recent trading.
Nvidia (NVDA) has told Chinese customers it may increase production capacity for its H200 AI chips after orders exceeded its output level, Reuters reported. An Nvidia spokesperson told MT Newswires that the company is managing its supply chain to "ensure that licensed sales of the H200 to authorized customers in China will have no impact on our ability to supply customers" in the US. Shares of Nvidia fell 2.8%.
Nasdaq (NDAQ) has proposed a rule change that would allow it to deny initial listing to companies even if the applicant meets all listing requirements based on the potential for manipulative trading by third parties, according to a regulatory filing. The company's shares were up 0.2%.
Oracle (ORCL) has moved the completion dates for some data centers being developed for Microsoft-backed (MSFT) OpenAI to 2028 from 2027 due primarily to labor and material shortages, Bloomberg reported. Shares of Oracle dropped 5.8% and Microsoft fell 1.2% in recent trading.
Reddit (RDDT) has filed an application to have Australia's ban on social media for people under 16 years reviewed by the country's High Court. "The law carries some serious privacy and political expression issues for everyone on the internet," Reddit said in a statement. Shares of the company were down 1.7%.
Lululemon athletica (LULU) founder and shareholder Chip Wilson said that new, independent directors "with real experience" should lead the company's search for a chief executive officer. He also raised concern over the board's alleged failure to implement an "effective" succession plan. The retailer's shares climbed 10% in recent trading.
Price: 175.71, Change: -5.22, Percent Change: -2.89
Comments