Traders heavily exposed to the technology sector will watch Broadcom (AVGO) today. After expecting strong results for the second quarter, AVGO stock fell by around 14% last night in after-hours trading.
Broadcom posted a 48% Y/Y increase in revenue, to $22.19 billion. $15.01 billion in sales are from semiconductors (+79% Y/Y). CEO Hok Tan commented that AI semiconductor revenue accelerated. Custom AI accelerators and AI networking demand have increased.
Before the strong Q2 report, AVGO stock traded at a forward P/E of 42.4 times.
Traders are quick to book profits in other AI suppliers, too. Lumentum (LITE) lost nearly 9%. In the fintech space, selling is accelerating. Global Payments (GPN) fell by over 8%.
Visa (V) and Mastercard (MA) faced selling pressure after the U.S. said it would ban their credit card processing in Cuba.
CrowdStrike (CRWD), a cybersecurity software supplier, might open down by over 10%. In its first quarter, non-GAAP EPS was $1.10 on revenue of $1.39 billion (+26.4% Y/Y). In the weeks leading to the report, CRWD stock gained 118.14% from its 52-week low. Profit-taking is expected. That starts on June 6.
In the cryptocurrency sector, Bitcoin (BTC-USD) continued its steady decline. It traded at around $63,000. ETFs and funds holding Bitcoin reported an increase in redemptions. Strategy (MSTR) spooked the BTC market by selling just over 30 Bitcoin.
