The stock market tumbled on Friday and finished worst week since April. The decrease was due to the continued selloff in technology stocks, as well as the global IT outage that affected Microsoft’s (MSFT) Windows computers.
Overall, S&P 500 declined 0.7% to 5,505, while NASDAQ fell 0.8% to 17,727,
Tweet of the Day
$ASML was down after earnings the prior qtr as well, and the news sent $ARM lower. Then $ARM had great earnings and the stock bolted higher. Arm is hte leader.
Today, $ARM is down 7% to $165 but still sells for greater than 40x 2024 sales est. Too expensive. 20x is reasonable. https://t.co/8aWxf6UWAp
— David Sharek (@GrowthStockGuy) July 17, 2024
Chart of the Day
Here is the one-year chart of Broadcom (AVGO) as of June 18, 2024, when the stock was at $1,803.
Broadcom’s stock jumped after the company released last quarter’s earnings. Profits increased 6% last quarter on a 43% rise in revenue, partly due to the company’s recent acquisition of VMware. Without VMware revenue would have rose 12%. Broadcom’s networking segment saw a 44% increase in revenue. It is getting a lot of revenue from AI buildouts as well. Last quarter, in semiconductors, AI revenue jumped 280%. Growth in AI sales helped offset some weaker performance in semiconductor sales from businesses and telecommunication companies. Broadcom’s method for building AI infrastructure is different, as its building a general product that fits everyone’s needs, with hardware from different manufacturers used in the datacenter.
AVGO is part of our Growth Portfolio.
