Should You Buy the Post-Earnings Dip in Broadcom Stock?
Broadcom (AVGO) shares closed down 5% on Friday after the chipmaker reported a strong fiscal Q2 but issued in-line guidance only for its current financial quarter.
However, analysts recommend buying AVGO shares on the post-earnings dip since the company's release indicated continued momentum in its artificial intelligence offerings.
Despite today's decline, Broadcom stock is up more than 70% versus its year-to-date low.
Buy Broadcom Stock as AI Is Getting Stronger
Broadcom guided for $5.1 billion in AI revenue for its current quarter – which translates to a much better-than-expected 60% increase on a year-over-year basis.
According to Melius Research analysts, investors should load up on AVGO stock on any dip as 'AI is strong and getting stronger due to incremental opportunities in networking and inferencing.'
Melius expects sustained momentum in the company's top line as more of its software customers switch to 'higher-value' VMware subscriptions.
Plus, the firm has confidence in Broadcom's ability to sign at least four more AI customers that it believes will contribute rather significantly to its revenue between 2027 and 2030.
A dividend yield of 0.95% tied to Broadcom stock makes up for another good reason to have it in your investment portfolio.
AVGO Shares Look Headed for $290
What's also worth mentioning is that AVGO doesn't expect its artificial intelligence revenue to grow at an accelerated pace in the near-term only.
In fact, the chipmaker forecasts similar growth rate (60% year-on-year) for this year as a whole – and for 2026 as well, which TD Cowen dubbed a 'strong signal of confidence in Broadcom's AI networking and XPU franchises' in a research note today.
On Friday, the investment firm raised its price objective on the semiconductor stock to $290 that indicates potential upside of another 18% from current levels.
Wall Street Rates Broadcom at 'Strong Buy'
Other Wall Street analysts are not as bullish on AVGO shares primarily because they've already had a huge run over the past two months.
The consensus rating on Broadcom stock currently sits at ' Strong Buy ' with the mean target of about $253 indicating potential upside of 3% only.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Should You Buy Broadcom Stock Right Now?
Broadcom (NASDAQ: AVGO) reported quarterly financial results that demonstrated soaring demand for its AI products. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » *Stock prices used were the afternoon prices of June 4, 2025. The video was published on June 6, 2025. Should you invest $1,000 in Broadcom right now? Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor 's total average return is997% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of June 2, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Globe and Mail
an hour ago
- Globe and Mail
Why Is Everyone Talking About Coupang's Stock?
Coupang (NYSE: CPNG) may not be a well-known company in the U.S., but it has certainly captured the hearts of consumers in South Korea, growing over the years to become the top e-commerce company in its home market. Coupang's solid performance has captured the attention of sharp-eyed investors, which explains its respectable 25% increase in stock price in the last 12 months (as of this writing). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » This article will delve deeper into the company and explore why investors are excited about it. The Amazon of South Korea and beyond Amazon has arguably been the most successful e-commerce company over the last two decades, leading to numerous clones attempting to replicate its business model in their respective markets. Most either don't perform well or fail outright, except for a handful, such as in China and Coupang in South Korea. Inspired by Amazon's customer obsession, Coupang strives to please its customers continually. One way is to provide a wide selection of products to customers, delivered at breathtaking speeds via its extensive in-house warehouse and logistics infrastructure. For instance, consumers can order fresh groceries and millions of other general merchandise items by midnight and receive products by 7 a.m. the next morning. If customers are unhappy with the products, they can tap a button on the app and leave the item outside their door for pickup -- refunds will be processed immediately after pickup. But that's just one part of the story. Coupang's efforts to delight its users have expanded far beyond their roots into other areas, including food delivery, online streaming, and services such as free appliance and furniture installations. Customers are eligible for all these perks for free if they join the Wow membership program. Unsurprisingly, customers love this approach, which explains Coupang's leading market share of 25% in South Korea. Coupang's success in South Korea has also prompted the company to expand into new geographies, such as Taiwan, and new business segments via the acquisition of Farfetch. While these new business additions will take time to bear fruit, they will open up new growth avenues for the e-commerce company. Coupang is executing well lately Coupang is also delivering solid growth. For the year ended Dec. 31, revenue surged by 24% (or 29% on an currency-neutral basis) to $30.3 billion on the back of growth in its e-commerce business and the acquisition of Farfetch. Coupang's growth continued into 2025, with revenue growing at 11% (or 21% on an currency-neutral basis ) to $7.9 billion. Top-line growth is just one part of the story. Coupang has gradually improved its margins over time, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improving from 3.9% to 4.8% in the last five quarters. The tech company targets adjusted EBITDA margins to exceed 10% in the long run, suggesting that there is still considerable room for improvement. In short, while Coupang is already generating tens of billions in revenue, it is well-positioned to sustain its growth momentum, leveraging its world-class infrastructure, vast customer base, and customer-obsessed culture. Coupang authorized a $1 billion share buyback plan Coupang's recent share buyback plan is a significant milestone for several reasons. One, it suggests that Coupang has evolved from a high-growth, loss-making company to one that's growing more sustainably and responsibly. To the extent that it can return excess cash to shareholders, such a move also signals the company's confidence in its future, suggesting that management may view the shares as undervalued compared to the company's prospects. Additionally, with ample cash on its balance sheet ($6.1 billion in cash and cash equivalents, as of the time of writing), management's share buyback plan demonstrates its discipline in capital allocation, which complements its other investments in growth and innovation. It also suggests that management has a clear strategy for capital allocation, which is likely to enhance long-term shareholder value. What it means for investors Coupang is a rare example of a successful Amazon clone that has achieved excellent outcomes. While continuing to execute its expansion strategy, Coupang is also on track to return excess cash to shareholders through share buybacks. Investors seeking to diversify their stock holdings beyond the U.S. may want to keep this company under their radar. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $363,030!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,088!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $674,395!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang and The Motley Fool has a disclosure policy.
CTV News
an hour ago
- CTV News
How to get the most from a home inspection
Your bid just got accepted on the home you want, and suddenly there's so much to think about—the mortgage, the homeowners insurance, your move. As the clock ticks toward closing, your real estate agent hurries you along. In such a high-stakes rush, it may seem like a luxury to brake for a slo-mo walk through your future home as an inspector peers over rooftops, pokes at basement walls, and peeks into crawl spaces. But of all the things you need to get done, a home inspection should be at the top of the list. It's your one opportunity to have a trained professional diagnose the health of a home's mechanicals, structure, plumbing, roof, and all sorts of other components. It's a chance to get to know the house a little better before you fully commit. And the report the inspector produces gives you leverage to negotiate a lower price, or repairs, especially if costly issues turn up. For all those reasons, based on guidance from expert inspectors and real estate professionals contacted by Consumer Reports, we recommend that you make time to attend your home inspection, which typically takes two to four hours. You'll see firsthand what the issues are and also get a chance to really examine the house yourself. Some inspectors are fine with you attending the inspection for the whole time. Others prefer working alone for the first couple of hours so that they can concentrate and then have buyers come for a walk-through toward the end of the inspection. Either way, plan on being there. 'A home inspection is like a medical exam,' says Bob Acuff, owner of RE/MAX Services, a real estate brokerage based in Blue Bell, Pa. 'It's an education for the buyer about something very complicated. So take the time to ask the inspector questions, study the report you get afterward.' To make sure the precious few hours of your inspection pay off—not to mention the report itself—follow this advice from experienced home inspectors and real estate agents. What to know before you go Don't bring your kids or pets. This is definitely an instance where you'll want to drop off your little one at grandma's and leave your dog at home, because both you and the inspector need to be able to focus on the inspection. 'Having kids around is a distraction,' says Raymond Hogan, a home inspector and owner of Second Look Home Inspections in Cobden, Ill. Another concern: They could get hurt or accidentally break something. Wear the right footwear. This is no time for flip flops; wear sturdy closed-toe shoes. You want to be able to follow your inspector around wherever they go, and that may include muddy yards and damp basements. These areas could be where your inspector identifies the most troubling concerns, like water damage or a sinking foundation. During the inspection This is your chance to get an in-depth look at a place you may call home and ask all the questions you want. 'There are a lot of systems in a house to go over,' says Don Norman, a senior building consultant for BPG Inspections in Alpharetta, Ga. Do the following as you walk through the house: Take your time. 'Most people bid on a house after they've viewed it for 15 minutes,' Norman says. 'I've had people walk into a house and say they thought the dining room was in a different place. The inspection is a good time to look again and make sure the home is how you remember it.' Listen for hints of trouble. It's not the inspector's job to tell you whether to buy a home or bail. But during your time together, listen for clues, advises Gary Roholt, owner of A+ Inspection Specialists, based in Rice Lake, Wis. 'Listen for words and phrases like 'major,' 'significant,' 'immediate repair,' 'get estimates,' and 'needs to be fixed now,' ' he says. If you hear the words 'fungal material,' your inspector is talking about mould, but because of liability reasons, may not want to come out and say the word 'mould.' Your inspector should know local building codes and will let you know, both in person and in their report, when something in the house could be unsafe or is outright dangerous. 'If it's a safety issue, we're going to comment on it,' Norman says. If the inspector finds a significant concern and you really want their opinion on whether to steer clear of the home, frame your query in a way that doesn't put them on the spot. For instance, you could ask the inspector whether it would be a deal breaker for them or a family member, says Tina Marie Jung, a Realtor with RE/MAX Results in St. Louis, Mo., who represents buyers in half of her transactions. Jung says an inspector once told her client point-blank: 'I'd tell my daughter to walk away.' Note where key controls are. Pay attention when the inspector points out important components, such as the electrical breaker panel, the furnace emergency switch, and the water main shutoff. It will save you headaches later if, say, you need to turn off the water when an internal pipe bursts. The inspection report may include photos or even videos identifying those items, but you're more likely to remember them if you see them for yourself, Hogan says. Get referrals for other experts. Some home inspectors have specialized training or certification to inspect, say, artificial stucco or log homes. But they aren't experts in every building trade. Also, they can only point out problems they can see. Though an inspection report may indicate potential concerns with septic systems, pest infestations, radon, asbestos, water quality, and possible signs of mold, it's not meant to outline the entire scope of those problems. For that, you'll need experts who have specialized training in those fields. Your inspector will probably be able to recommend qualified specialists. You can also approach friends who've hired these professionals in the past for referrals, or check online reviews of specialists to home in on a candidate. Your inspector finds worrisome foundation cracks? You'll want a structural engineer or an architect to check it out more thoroughly. Does the house have a septic system? You'll want a septic-system testing company to come out and make sure it's in working order. Looking at a home that's 70 years or older? Consider hiring a plumber to use a 'sewer cam' — a big plumbing snake fitted with a video camera — to scope out blockages in the waste pipe that connects the home to the municipal system. 'In my area, a sewer cam costs US$175,' Jung says. 'But if the waste line turns out to need replacement, it could be $15,000 to $20,000 to jackhammer the sidewalk to get at it.' At the negotiating table Inspectors usually complete the report within a day or two. Once you have it in hand, task your real estate agent or attorney with presenting the items of concern to the seller for further negotiations. And if the inspector has mentioned specific issues that an expert should look at, don't be shy about telling the seller you need time to get those evaluations and estimates. Focus on major concerns. In your negotiations, bring up concerns that require remediation and repairs. There's often the most wiggle room for addressing problems with the major components of the home, such as the roof or HVAC, or concerns about radon or termites, Jung says. Bringing up minor concerns, though, may antagonize the seller. 'Stay away from mentioning the small nuts and bolts,' she says, 'the squeaky floors, missing locks on the door, the dishwasher needing to be replaced in a year.' Be firm on fixing safety and health threats. Sellers are more likely to negotiate on safety problems, such as a missing handrail on the stairs, especially if fixes are required for occupancy, says Jonathan Mernit, a real estate agent with Coldwell-Banker in Dobbs Ferry, N.Y. And health concerns that surface from further tests—like radon in basements—are a no-brainer, he adds. If the test comes back with results over the limit, the seller will have to remediate. 'The issue's going to come up with other buyers, so they're not going to say no,' he explains. Be open-minded about compensation. Keep in mind that you have more options than just asking for a lower price. For instance, you can ask the seller to give you a credit at the closing for the repair costs or see whether they will hire a professional to make the necessary repairs. Be realistic. If the seller agrees to repair or replace an item, don't expect her to pay for anything except the most basic work necessary, Jung warns. In a roof repair, for instance, you'll need to specify whether you want higher-quality shingles, and pay the price difference. 'The seller isn't going to give you the Cadillac of roofs,' Jung says. Be aware that your negotiating success may depend on whether the real estate market currently favors buyers or sellers. 'Seven or eight years ago, it was clearly a buyer's market where they were able to negotiate potentially thousands of dollars off for minor defects,' Acuff says. 'Sellers just wanted to get their house sold. That's not the market we're in today.' In fact, real estate agents told us, in a seller's market you could be competing with a buyer who doesn't require an inspection at all. In that case, you'll have to decide whether to back off your demands or walk away. 'Sometimes the best deal you do is the deal you don't do,' Acuff says. After your closing If you do buy the home, use the inspection report as a road map for repairs and maintenance. And don't be shy about contacting the inspector, even long after you've moved in. Norman notes that he doesn't charge anything to discuss his report—even years after the inspection—and in his experience, most home inspectors would do the same. By Tobie Stanger, Consumer Reports
