October 27, 2010
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 communications chipmaker Broadcom (Nasdaq: BRCM ) soared more than 11% in intraday trading on strong third-quarter financial results.
So What: Excluding certain items, Broadcom earned $0.74 a share on $1.81 billion in revenue. Analysts were expecting $0.71 and $750 million, respectively. In a call with analysts, CEO Scott McGregor attributed his company's outperformance to consumers' "increasing demand for data."
Now What: Being part of Apple's (Nasdaq: AAPL ) list of iPhone suppliers surely also helps. The Mac maker sold 14 million handsets in its latest quarter. As long as Apple's iPhone growth story remains intact, so will Broadcom's.
Interested in more info on Broadcom? Add it to your watchlist.