Broadcom's "Robust" Boom Ignored

And, Lululemon's outlook crashes stock.

June 06, 2025

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Today is Friday, June 6, 2025.

The Early Bird Index today is 80.80

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Broadcom's "Robust" Boom Ignored

Semiconductor company Broadcom $AVGO ( ▼ 0.44% ) fell 4.20% in after-hours trading on Thursday despite reporting strong quarterly earnings results that beat Wall Street expectations.

Financials: Broadcom reported earnings of $1.58 per share and revenue of $15 billion in the past quarter. Both were better than expected.

Powering the Story: Revenue grew 46% in the past quarter, which CEO Hock Tan attributed to “robust demand for AI networking.” The company also raised its financial outlook as it anticipates AI semiconductor revenue growth in the current quarter.

Early Bird’s Nest Egg Gains: Why did Broadcom’s stock fall? High expectations were already priced into the stock, which is up nearly 80% in the past two months.

  • The stock’s price-to-earnings valuation of 125 is trading near the high end of its historical range. This leaves little room for error.

  • Some investors are wary of potential risks, such as the cyclicality of AI infrastructure spending.

Final Thoughts: Zooming out, it seems there is also some sector weakness.

Notables

Notable Earnings Today: ABM Industries (NYSE: ABM), FuelCell Energy (Nasdaq: FCEL), G-III Apparel Group (Nasdaq: GIII).

Notable IPOs Today: Omada Health, Inc. (Nasdaq: OMDA).

Notable Equity Crowdfunding Campaigns Ending Today: Grace and Chaos (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Consumer Credit (3:00 p.m. ET).

Lululemon's Outlook Crashes Stock

Shares of Lululemon Athletica $LULU ( ▼ 1.32% ) plunged 22.37% in after-hours trading on Thursday after reporting financial results and cutting its financial outlook.

Financials: Lululemon reported earnings of $2.60 per share in the past quarter, which was better than expected. Revenue reached $2.4 billion, which was in-line.

Details: Comparable store sales increased 1%, which was lower than expected.

Powering the Story: Blaming the “dynamic macroenvironment,” Lululemon slashed its financial outlook for the year. It only expects earnings for 2025 to be $14.58 to $14.78 per share, which was lower than it previously said.

Final Thoughts: The stock was previously down 11% this year.

Petco Falls Amid Lower Sales

The Petco Health and Wellness Company $WOOF ( ▲ 1.69% ) fell 6.91% in after-hours trading on Thursday after posting mixed financial results.

Financials: Petco reported a loss of 4 cents per share in the past quarter, which was better than expected. However, it only reported revenue of $1.5 billion, which was lower than expected.

Details: Both net sales and comparable store sales decreased in the past quarter. Despite the problems, Petco reaffirmed its financial outlook.

Final Thoughts: It’s a sad time for Petco investors. The stock is down 86% in the last 5 years.

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