Today is Friday, September 1, 2023.
The Early Bird Index today is 56.01.
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Broadcom's AI Push Falls Short
Despite posting better-than-expected financial results, semiconductor company Broadcom (Nasdaq: AVGO) dropped 4.65% in after-hours trading on Thursday.
Financials: Broadcom reported earnings of $10.54 per share in the past quarter and revenue of $8.87 billion; both were better than expected.
Details: Revenue increased by 5% and the company generated $4.6 billion in free cash flow.
Quote: “Broadcom's third quarter results were driven by demand for next generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers.” - Hock Tan, President and CEO of Broadcom.
Yes, But: The company said that it expects revenue in the current quarter to be about $9.27 billion, which is lower than expected.
Stock Price: Broadcom is up 66% in 2023, but flat in the last 30 days.
Final Thoughts: As the semiconductor industry surged in 2023, Broadcom’s stock benefited. The company’s AI business looks positive, but some investors are worried about the non-AI businesses in Broadcom. Investors are keeping a close eye on Broadcom as it wraps up a deal to acquire cloud computing company VMware (NYSE: VMW).
Notable Earnings Today: Dingdong (NYSE: DDL).
Notable IPOs Today: NewtekOne, Inc. 8.00% Fixed Rate Senior Notes due 2028 (Nasdaq: NEWTI).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
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), S&P Global US Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI / Prices / Employment (10:00 a.m. ET).
MongoDB Delivers Strong Results
Software company MongoDB (Nasdaq: MDB) jumped 4.90% in after-hours trading on Thursday after posting strong financial results.
Financials: MongoDB reported earnings of 93 cents per share in the past quarter and revenue of $423.8 million; both were better than expected.
Big Growth: Revenue jumped 40% in the quarter, including a 38% increase in revenue from MongoDB Atlas, the company’s database service. The company has over 45,000 customers.
Outlook: MongoDB expects revenue for the current quarter to be between $400 million to $404 million, which is better than expected.
Stock Price: The stock is up nearly 100% in 2023, but is down 10% in the last 30 days.
Final Thoughts: MongoDB produced good results. And the best part is the company is only in the early stages of using AI.
Nutanix’s $350 Million Stock Buyback
Cloud computing company Nutanix (Nasdaq: NTNX) soared by 16.72% in after-hours trading on Thursday after posting strong financial results.
Financials: Nutanix reported earnings of 24 cents per share in the past quarter and revenue of $494.2 million; both were better than expected.
Final Thoughts: The company also raised its financial guidance and introduced a $350 million stock buyback to raise the price. Nutanix is up 18% this year.
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Trends to Watch
Coming in September: Arm to Hold Roadshow After Labor Day, With IPO Pricing Sept. 13 (Bloomberg)
Wait Until October: SEC Delays Spot Bitcoin ETF Decision for All Applicants Including BlackRock, Fidelity (CoinDesk)
Dude You’re Getting Good Earnings: Dell Technologies Trounces Second-Quarter Goals, Says AI Is A Tailwind (Investor’s Business Daily)
Winning Streak Continues: Lululemon ups guidance after ‘strong’ growth in China boosts quarterly sales (CNBC)
Bullish: When will it be too late to invest in Bitcoin? (Cointelegraph)
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