Broadcom's Boring AI Revenue 🥱

Plus, UiPath's $500 million buyback.

September 06, 2024

Today is Friday, September 6, 2024.

The Early Bird Index today is 68.94.

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Broadcom's Boring AI Revenue 🥱

Although Broadcom (Nasdaq: AVGO) raised its artificial intelligence revenue outlook as part of its financial results, the stock fell by 6.73% in after-hours trading on Thursday.

Financials: Broadcom reported earnings of $1.24 per share in the past quarter and revenue of $13.07 billion; both were better than expected.

Details: The semiconductor company now expects AI revenue in 2024 to hit $12 billion, but investors were not impressed.

Outlook: Broadcom’s forecast of $14 billion in total revenue for the current quarter was seen as good but not exciting.

Early Bird’s Nest Egg Gains: The revenue bar has been raised for public AI companies due to several factors.

  • Wall Street has developed extremely high expectations for AI companies due to the rapid growth and hype surrounding new technologies and the massive investments pouring into the sector.

  • Investors now expect not just revenue growth, but also clear paths to profitability, competitive advantages, and practical applications of AI technology.

Final Thoughts: Broadcom is up 40% this year. Before these results, it was slightly ahead of its rival Nvidia (Nasdaq: NVDA) in the last 30 days.

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Notables

Notable Earnings Today: ABM Industries (NYSE: ABM), Brady (NYSE: BRC), BRP Inc. (Nasdaq: DOOO), Genesco (NYSE: GCO), Big Lots (NYSE: BIG).

Notable IPOs Today: Vine Hill Capital Investment Corp. Unit (Nasdaq: VCICU), Impact BioMedical, Inc. (NYSE American: IBO).

Notable Equity Crowdfunding Campaigns Ending Today: International Wings Factory (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET).

UiPath's $500 Million Buyback

Source: UiPath

Shares of UiPath (NYSE: PATH) jumped 10.20% in after-hours trading on Thursday after the robotic process automation software company posted good financial earnings results.

Financials: UiPath reported earnings of 4 cents per share in the past quarter and revenue of $316 million; both were better than expected.

Details: The company announced a $500 million stock buyback to raise its stock price. Also, the company said CFO Ashim Gupta will take on an expanded role as COO.

Final Thoughts: UiPath is down 46% this year and trying to turn things around.

Aptos Falls Before Unlock Event

The price of the cryptocurrency Aptos dropped 7% on Thursday and is now down 14% in the last 7 days.

Powering the Story: A major factor putting pressure on Aptos' price is an impending token unlock scheduled for next week. 

Details: About $65 million worth of locked Aptos tokens will be released to the public next week.

Final Thoughts: Despite the recent decline, the price of Aptos has been positive in the last 30 days.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.