Broadcom's Stock May Drop Sharply Following Results

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Broadcom's Stock May Drop Sharply Following Results

Seeking Alpha09-04

Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by ...

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jethro
·09-04
Thanks for sharing 🙏
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Boybabyrage
·09-04
The thing about Broadcom is that they have many different flows of revenue. I think they will do well and prolly exceeds the analyst expectations.
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Icywinddale
·09-04
may drop? Why we need waste time to read this article? [Weak] [Weak]
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href=https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by ...</p>\n\n<a href=\"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BZ9MQY76.HKD","symbol_name":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) 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VL \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC"},"translate_title":"业绩公布后博通股价可能大幅下跌","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AVGO":1},"content_text":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.Despite impressive growth, Broadcom's valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.JHVEPhotoBroadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.AI or Not AIIn contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.BloombergDespite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.BloombergNo SurprisesBroadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.BloombergOptions Betting on Further UpsideLooking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.It's important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.BloombergAlready At SupportFrom a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.TradingViewNot CheapValuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.BloombergWhile Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"analysis","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":345837410455696,"gmtCreate":1725438437579,"gmtModify":1725438441260,"author":{"id":"4103089604754610","authorId":"4103089604754610","authorIdStr":"4103089604754610","name":"jethro","avatar":"https://static.tigerbbs.com/445b4765728802a2e3b3795587bae0a3","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":6,"crmLevelSwitch":1,"idStr":"4103089604754610"},"htmlText":"Thanks for sharing 🙏&nbsp;","listText":"Thanks for sharing 🙏&nbsp;","text":"Thanks for sharing 🙏","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/345837410455696","repostId":2464351176,"repostType":4,"repost":{"id":"2464351176","pubTimestamp":1725428700,"share":"https://ttm.financial/m/news/2464351176?lang=&edition=fundamental","pubTime":"2024-09-04 13:45","market":"us","language":"en","title":"Broadcom's Stock May Drop Sharply Following Results","url":"https://stock-news.laohu8.com/highlight/detail?id=2464351176","media":"Seeking Alpha","summary":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by V","content":"<html><head></head><body><ul style=\"\"><li><p>Broadcom&#39;s Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.</p></li><li><p>The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.</p></li><li><p>Despite impressive growth, Broadcom&#39;s valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8c91587eababb5a90a14f1f8183f7b1a\" alt=\"JHVEPhoto\" title=\"JHVEPhoto\" tg-width=\"750\" tg-height=\"500\"/><span>JHVEPhoto</span></p><p>Broadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.</p><h2 id=\"id_648776196\">AI or Not AI</h2><p>In contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/52d0e70018b4ded1cf805bd0e748e128\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><p>Despite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6d5d225a519e5b40485093100af19f89\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><h2 id=\"id_4278677996\">No Surprises</h2><p>Broadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9f1a78a94a703a65991bac4cf430ef68\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"339\"/><span>Bloomberg</span></p><h2 id=\"id_3511479312\">Options Betting on Further Upside</h2><p>Looking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.</p><p>It&#39;s important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/13056874964d6a821c5d80a23dd8cfae\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><h2 id=\"id_623294998\">Already At Support</h2><p>From a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c37dc34a2c29767ce2b7f2bbae4a8beb\" alt=\"TradingView\" title=\"TradingView\" tg-width=\"640\" tg-height=\"291\"/><span>TradingView</span></p><h2 id=\"id_3577052737\">Not Cheap</h2><p>Valuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8df38f6c2538ff1c591f7436fa2c929a\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"288\"/><span>Bloomberg</span></p><p>While Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.</p><p>Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom's Stock May Drop Sharply Following Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom's Stock May Drop Sharply Following Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-04 13:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by ...</p>\n\n<a href=\"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU0056508442.USD":"贝莱德世界科技基金A2","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4515":"5G概念","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4585":"ETF&股票定投概念","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0109392836.USD":"富兰克林科技股A","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4575":"芯片概念","BK4566":"资本集团","BK4581":"高盛持仓","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","AVGO":"博通","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0345769128.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) ACC","LU0861579265.USD":"联博低波幅策略股票基金A","BK4588":"碎股","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0323591593.USD":"SCHRODER ISF QEP GLOBAL QUALITY \"A\" (USD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0444971666.USD":"天利全球科技基金","BK4141":"半导体产品","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0345769631.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) INC","BK4551":"寇图资本持仓","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC"},"source_url":"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2464351176","content_text":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.Despite impressive growth, Broadcom's valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.JHVEPhotoBroadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.AI or Not AIIn contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.BloombergDespite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.BloombergNo SurprisesBroadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.BloombergOptions Betting on Further UpsideLooking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.It's important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.BloombergAlready At SupportFrom a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.TradingViewNot CheapValuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.BloombergWhile Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":345806268809440,"gmtCreate":1725430839055,"gmtModify":1725430842892,"author":{"id":"4178332581629092","authorId":"4178332581629092","authorIdStr":"4178332581629092","name":"Boybabyrage","avatar":"https://community-static.tradeup.com/news/5b59a07cca9804884b312ca8a7ac871d","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":7,"crmLevelSwitch":1,"idStr":"4178332581629092"},"htmlText":"The thing about Broadcom is that they have many different flows of revenue. I think they will do well and prolly exceeds the analyst expectations.&nbsp;","listText":"The thing about Broadcom is that they have many different flows of revenue. I think they will do well and prolly exceeds the analyst expectations.&nbsp;","text":"The thing about Broadcom is that they have many different flows of revenue. I think they will do well and prolly exceeds the analyst expectations.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/345806268809440","repostId":2464351176,"repostType":2,"repost":{"id":"2464351176","pubTimestamp":1725428700,"share":"https://ttm.financial/m/news/2464351176?lang=&edition=fundamental","pubTime":"2024-09-04 13:45","market":"us","language":"en","title":"Broadcom's Stock May Drop Sharply Following Results","url":"https://stock-news.laohu8.com/highlight/detail?id=2464351176","media":"Seeking Alpha","summary":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by V","content":"<html><head></head><body><ul style=\"\"><li><p>Broadcom&#39;s Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.</p></li><li><p>The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.</p></li><li><p>Despite impressive growth, Broadcom&#39;s valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8c91587eababb5a90a14f1f8183f7b1a\" alt=\"JHVEPhoto\" title=\"JHVEPhoto\" tg-width=\"750\" tg-height=\"500\"/><span>JHVEPhoto</span></p><p>Broadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.</p><h2 id=\"id_648776196\">AI or Not AI</h2><p>In contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/52d0e70018b4ded1cf805bd0e748e128\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><p>Despite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6d5d225a519e5b40485093100af19f89\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><h2 id=\"id_4278677996\">No Surprises</h2><p>Broadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9f1a78a94a703a65991bac4cf430ef68\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"339\"/><span>Bloomberg</span></p><h2 id=\"id_3511479312\">Options Betting on Further Upside</h2><p>Looking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.</p><p>It&#39;s important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/13056874964d6a821c5d80a23dd8cfae\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><h2 id=\"id_623294998\">Already At Support</h2><p>From a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c37dc34a2c29767ce2b7f2bbae4a8beb\" alt=\"TradingView\" title=\"TradingView\" tg-width=\"640\" tg-height=\"291\"/><span>TradingView</span></p><h2 id=\"id_3577052737\">Not Cheap</h2><p>Valuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8df38f6c2538ff1c591f7436fa2c929a\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"288\"/><span>Bloomberg</span></p><p>While Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.</p><p>Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom's Stock May Drop Sharply Following Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom's Stock May Drop Sharply Following Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-04 13:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by ...</p>\n\n<a href=\"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU0056508442.USD":"贝莱德世界科技基金A2","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4515":"5G概念","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4585":"ETF&股票定投概念","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0109392836.USD":"富兰克林科技股A","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4575":"芯片概念","BK4566":"资本集团","BK4581":"高盛持仓","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","AVGO":"博通","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0345769128.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) ACC","LU0861579265.USD":"联博低波幅策略股票基金A","BK4588":"碎股","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0323591593.USD":"SCHRODER ISF QEP GLOBAL QUALITY \"A\" (USD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0444971666.USD":"天利全球科技基金","BK4141":"半导体产品","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0345769631.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) INC","BK4551":"寇图资本持仓","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC"},"source_url":"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2464351176","content_text":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.Despite impressive growth, Broadcom's valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.JHVEPhotoBroadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.AI or Not AIIn contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.BloombergDespite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.BloombergNo SurprisesBroadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.BloombergOptions Betting on Further UpsideLooking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.It's important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.BloombergAlready At SupportFrom a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.TradingViewNot CheapValuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.BloombergWhile Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":345806160150816,"gmtCreate":1725430725198,"gmtModify":1725430728876,"author":{"id":"3574807189087941","authorId":"3574807189087941","authorIdStr":"3574807189087941","name":"Icywinddale","avatar":"https://static.itradeup.com/news/3bd2fbf9d90e26b2f600b2c5d7c54244","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574807189087941"},"htmlText":"may drop? &nbsp;Why we need waste time to read this article? [Weak]&nbsp; [Weak]&nbsp;&nbsp;","listText":"may drop? &nbsp;Why we need waste time to read this article? [Weak]&nbsp; [Weak]&nbsp;&nbsp;","text":"may drop? Why we need waste time to read this article? [Weak] [Weak]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/345806160150816","repostId":2464351176,"repostType":2,"repost":{"id":"2464351176","pubTimestamp":1725428700,"share":"https://ttm.financial/m/news/2464351176?lang=&edition=fundamental","pubTime":"2024-09-04 13:45","market":"us","language":"en","title":"Broadcom's Stock May Drop Sharply Following Results","url":"https://stock-news.laohu8.com/highlight/detail?id=2464351176","media":"Seeking Alpha","summary":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by V","content":"<html><head></head><body><ul style=\"\"><li><p>Broadcom&#39;s Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.</p></li><li><p>The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.</p></li><li><p>Despite impressive growth, Broadcom&#39;s valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8c91587eababb5a90a14f1f8183f7b1a\" alt=\"JHVEPhoto\" title=\"JHVEPhoto\" tg-width=\"750\" tg-height=\"500\"/><span>JHVEPhoto</span></p><p>Broadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.</p><h2 id=\"id_648776196\">AI or Not AI</h2><p>In contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/52d0e70018b4ded1cf805bd0e748e128\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><p>Despite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6d5d225a519e5b40485093100af19f89\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><h2 id=\"id_4278677996\">No Surprises</h2><p>Broadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/9f1a78a94a703a65991bac4cf430ef68\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"339\"/><span>Bloomberg</span></p><h2 id=\"id_3511479312\">Options Betting on Further Upside</h2><p>Looking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.</p><p>It&#39;s important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/13056874964d6a821c5d80a23dd8cfae\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"251\"/><span>Bloomberg</span></p><h2 id=\"id_623294998\">Already At Support</h2><p>From a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c37dc34a2c29767ce2b7f2bbae4a8beb\" alt=\"TradingView\" title=\"TradingView\" tg-width=\"640\" tg-height=\"291\"/><span>TradingView</span></p><h2 id=\"id_3577052737\">Not Cheap</h2><p>Valuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8df38f6c2538ff1c591f7436fa2c929a\" alt=\"Bloomberg\" title=\"Bloomberg\" tg-width=\"640\" tg-height=\"288\"/><span>Bloomberg</span></p><p>While Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.</p><p>Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Broadcom's Stock May Drop Sharply Following Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBroadcom's Stock May Drop Sharply Following Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-04 13:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by ...</p>\n\n<a href=\"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU0056508442.USD":"贝莱德世界科技基金A2","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4515":"5G概念","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4585":"ETF&股票定投概念","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0109392836.USD":"富兰克林科技股A","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4575":"芯片概念","BK4566":"资本集团","BK4581":"高盛持仓","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","AVGO":"博通","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0345769128.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) ACC","LU0861579265.USD":"联博低波幅策略股票基金A","BK4588":"碎股","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0323591593.USD":"SCHRODER ISF QEP GLOBAL QUALITY \"A\" (USD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU0444971666.USD":"天利全球科技基金","BK4141":"半导体产品","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0345769631.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) INC","BK4551":"寇图资本持仓","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC"},"source_url":"https://seekingalpha.com/article/4718714-broadcom-stock-may-drop-sharply-following-results","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2464351176","content_text":"Broadcom's Q3 earnings forecast shows a 15% year-over-year EPS increase and 46% year-over-year revenue growth, driven mainly by its infrastructure software segment.The software segment, bolstered by VMware, is expected to double sales to $5.5 billion, overshadowing modest growth in semiconductor and AI segments.Despite impressive growth, Broadcom's valuation is high at 26 times earnings, raising concerns about the sustainability of its premium valuation.JHVEPhotoBroadcom (NASDAQ:AVGO) will report its fiscal third quarter earnings after the market closes on Sept. 5. Analysts are forecasting a 15% y/y increase in earnings per share to $1.22, alongside a significant 46% y/y growth in revenue, bringing the total to approximately $13 billion. However, it’s important to note that the growth in Broadcom’s Semiconductor Solutions segment is expected to be relatively modest, with an anticipated increase of just 7% y/y, reaching $7.4 billion. The company’s AI segment is projected to see only a slight uptick, growing by 5% q/q to $3.3 billion.AI or Not AIIn contrast, Broadcom’s infrastructure software segment drives much of the company’s overall growth. This unit is expected to see its sales more than double, reaching $5.5 billion, with VMware contributing $3.3 billion. This shift highlights Broadcom’s growth, which is increasingly coming from its software side, mainly through acquiring VMware, rather than from its traditional semiconductor business. This dynamic may surprise those who view Broadcom primarily as an AI-driven company, which makes up a relatively small amount of total revenue.BloombergDespite the company’s impressive growth figures, Broadcom no longer provides quarterly guidance, having shifted to offering only annual forecasts. For the current year, the company is targeting $51 billion in revenue, a figure that was reiterated last quarter. Analysts expect it to slightly exceed that at $51.7 billion.BloombergNo SurprisesBroadcom has a history of reporting in line with revenue estimates, with last quarter marking its most significant beat in recent times at 3.5%. Regarding adjusted earnings, the company also tends to beat expectations by a small margin, typically around 1%. Market expectations for Broadcom’s stock movement post earnings are modest, with a projected move of around 6.7%.BloombergOptions Betting on Further UpsideLooking at options positioning for the week of Sept. 6, implied volatility [IV] is relatively modest at 77%, though it should continue to rise heading into the earnings release as event risk builds. The options market is very bullish on Broadcom, as noted by the solid positive call gamma and delta values, particularly around the $160 strike price, with resistance at $170 and support near $150.It's important to note that once the event risk passes, the implied volatility will drop, and both the calls and the puts will see their premiums fall dramatically. As of Sept. 3, a buyer of the $160 calls needs the stock to rise above $166 following the results, or the options will lose value by 6.5%. This is similar to what happened with Nvidia, and if the stock cannot clear $160, option holders could sell their positions. That may be hard to do, considering the implied move being priced in by the market is just 6.75%, as already noted.BloombergAlready At SupportFrom a technical perspective, Broadcom’s stock is currently trading around $155, a level that had previously served as support. The $170 area appears to be a key resistance point, while the $136 region has recently been a support zone.TradingViewNot CheapValuation wise, Broadcom is trading at 26 times earnings, significantly higher than its historical average of around 13 to 14 times. On a price-to-sales basis, the stock is currently valued at 12 to 13 times sales, well above historical norms. This elevated valuation suggests that much of the optimism around Broadcom is tied to its AI prospects, despite the bulk of its growth coming from the VMware acquisition.BloombergWhile Broadcom’s AI business is expected to contribute significantly to its revenue in the coming years, its current valuation appears stretched, particularly when compared to its historical trends. Investors seem to be betting on further upside, but the steep valuation raises questions about whether Broadcom can continue to justify its premium valuation.Additionally, the big risk here is that Broadcom does what it normally does when it reports results, delivering as expected. If that should happen, the overly bullish options market is likely to bring a lot of stock for sale, pushing shares lower, and making the call options a losing bet.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":7,"commentSize":3,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}