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Broadcom's AI Push Falls Short

Broadcom's AI Push Falls Short

And, MongoDB delivers strong results.

An RP2040 microcontroller held with a tweezer above a PCB. PCB was designed in KiCad and fabricated by PCBWay. Photo shot in Lumix G85.

Photo by Vishnu Mohanan on Unsplash

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).

Notables

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

Mongodb icon in 3D. My 3D work may be seen in the section titled "3D Render."

Photo by Rubaitul Azad on Unsplash

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.