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Broadcom Shares Fall as Margin Warning Tempers Strong Q1 Revenue Outlook

Investors focused on a forecast calling for a one-point sequential margin decline.

Overview

  • Broadcom stock fell about 5.4% to roughly $340.59 on Monday, according to Benzinga Pro data.
  • The company projected fiscal first-quarter revenue of approximately $19.1 billion, above the $18.27 billion consensus.
  • Management guided for a sequential gross-margin contraction of about 100 basis points in the first quarter.
  • Monday’s drop extended weakness following last week’s cautious outlook from the company.
  • The Benzinga report included basic guidance on buying or shorting the stock and disclosed partial AI-assisted content production.