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AVGO Wrecked a Lot of Traders Today

Broadcom (AVGO) shares cratered 14% after a Q2 earnings beat was overshadowed by conservative AI guidance. Reddit is full of loss porn and margin calls, but some are arguing the sell-off is overdone.

  1. AVGO dropped ~14% on June 4 after Q2 earnings beat but Q3 AI guidance came in below whisper expectations.

  2. Retail investors on r/wallstreetbets shared major losses on AVGO, including one trader who blew $10K in a day.

  3. Several analysts, including Goldman Sachs and BofA, reiterated Buy ratings, viewing the pullback as an overreaction.

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Broadcom stock got absolutely crushed on Thursday, falling roughly 14% even after the company beat Q2 revenue and EPS estimates. The culprit? Management's

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$AVGO Q3 AI revenue guidance of $16 billion fell short of what the whisper numbers had baked in at $17.2 billion. On r/wallstreetbets, that pain was deeply personal.

Reddit's Pain Is Palpable

Two posts from r/wallstreetbets dominated the conversation. One trader titled his post “I did it y’all!!

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$AVGO 📉” and recounted losing $10,000 in a single day. “I finally lost ten racks in a single day. 🥲 At least I can remember to put the fries in the bag!” they wrote, pulling in 302 upvotes and 45 comments.

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$AVGO had 11 total mentions across posts on Reddit on June 4, with a sentiment score of 0.55 (more bullish than bearish despite the losses). The ticker ranked 8th overall and jumped 54 spots in the rankings, a huge move that signals how intensely it captured retail attention.

The News Side: Earnings Beat, Guidance Miss

Broadcom's actual Q2 numbers were strong: AI chip revenue hit $10.8 billion, up 143% year over year. But the stock's 14%+ drop tells the real story. According to The Motley Fool, “management's conservative Q3 AI revenue guidance of $16B versus whisper expectations of $17.2B” was the trigger. Another Motley Fool piece argued this was “a correction of unrealistic expectations rather than fundamental weakness.”

Benzinga pointed out that Broadcom has seen single-day drops exceeding 15% only three times before, and in each case, the stock rebounded with an average one-year return of 132%. Goldman Sachs and BofA both reiterated Buy ratings and raised price targets, characterizing the sell-off as a “repricing of expectations.”

What This Means for AVGO Bulls

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$AVGO remains one of the highest-conviction AI infrastructure plays. The company reaffirmed its $100 billion AI revenue target by 2027, and the AI chip business is growing at 143% annually. The sell-off was driven by expectations that had simply gotten too high, not by any deterioration in the underlying business. The Artificial Intelligence trade remains alive, but it’s getting bumpy.

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