Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Broadcom
So what: The poor outlook overshadowed what was otherwise a decent quarter. Revenue rose 24% to $1.82 billion, and adjusted profit improved to $0.68 a share, MarketWatch reported. Analysts had been calling for $1.81 billion and $0.59, respectively, according to Yahoo! Finance data.
Now what: They were also looking for growth. Instead, management told investors in a press release to expect either flat to negative sequential revenue growth in the second quarter. Analysts were looking for at least $1.9 billion. The gulf appears to have incited the sell-off, though a poor report from longtime supplier MIPS Technologies
And yet the sell-off may have created a buying opportunity. Fools rating Broadcom in Motley Fool CAPS today are taking a long-term bullish view. Analysts, meanwhile, have largely remained bullish while acknowledging the problems with the company's near-term outlook, according to a compilation of views reported by The Wall Street Journal.
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