Stocks Mixed Following PPI; AVGO, TSLA in Focus

What Analysts Think of Broadcom’s Share Price

15 minutes ago

Broadcom (AVGO) stock was on track to close at a record high for a fourth straight day Thursday as analysts touted its position in the booming artificial intelligence (AI) market following a blowout earnings report.

Bank of America raised its price target to $2,000 from $1,680, calling Broadcom its “top 2 AI pick” on custom AI chips. That price would put Broadcom’s market capitalization at more than $930 billion, but analysts also suggested the company could “join the trillionaires club” along with Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), and Nvidia (NVDA).

Goldman Sachs also boosted its price target, to $1,850 from $1,550, arguing that along with Nvidia, it views “Broadcom as a critical piece to the ongoing AI infrastructure build-out.” It said it sees the share price outperforming estimates.

Mizuho also increased its price target on the stock, to $1,900 from $1,625.

Shares of Broadcom were up 12% at $1,675 early Thursday afternoon.

–Bill McColl

Stocks Making the Biggest Moves Midday

1 hr 29 min ago

Gains:

Tesla (TSLA): Shares rose 4% after CEO Elon Musk said late Wednesday that shareholders are set to approve his $55.8 billion pay package and the EV maker’s reincorporation in Texas at the company’s annual shareholder meeting today. 

Broadcom (AVGO): Shares surged more than 14% after the chipmaker reported better-than-expected fiscal second-quarter revenue, fueled by AI product sales. It also announced a 10-for-one stock split as Wall Street darling Nvidia (NVDA) did recently. Nvidia shares rose 3%. 

Losses:

Dave & Buster’s Entertainment (PLAY): Shares tumbled more than 11% after the game-themed restaurant chain’s first-quarter results undershot analysts’ forecasts.

MicroStrategy (MSTR): Shares in the software company, which has morphed into one of the world’s largest corporate holders of bitcoin, fell 6% after the company said it plans to sell $500 million in convertible bonds in a private placement, with proceeds going toward buying more of the token.

Dave & Buster’s Stock Drops as Earnings Miss Estimates Amid Soft Consumer Demand

1 hr 52 min ago

Dave & Buster’s Entertainment (PLAY) shares slumped after the restaurant and entertainment chain posted quarterly results that fell short of expectations amid challenging economic conditions weighing on consumer demand.

For the quarter ending May 5, the company reported diluted earnings of 99 cents per share, significantly below the $1.73 a-share-figure expected by analysts. Revenue in the period of $588.1 million fell 1.5% from a year earlier and came in below the consensus forecast of $616 million. Moreover, same store sales declined 5.6% from last year’s equivalent quarter, a steeper fall than the 3.8% Street estimate.

Breaking down the top line, the company’s entertainment revenue, which makes up about two-thirds of net sales, fell 1.9% to $385.7 million, while revenue in its food and beverage business tallied $202.4 million, down from $204.2 million in the same quarter last year.

Since Dave & Buster’s shares formed a bull trap in early April, the price has continued to trend lower. Although the price managed to close above the closely-watched 200-day moving average leading into the quarterly results, it sits poised to resume its sell-off following the chain’s earnings and revenue miss.

Looking ahead, investors should monitor if buyers can defend a zone of support from prior price action over the past 15 months between $45 and $47. A failure to hold this key area could see the price revisit lower support around $37.50.

The stock was down 10% and is 16% lower this year.

–Tim Smith

Tesla Stock Gains as Musk Says His $56B Pay Deal Will Be Approved

2 hr 33 min ago

Tesla (TSLA) shares gained Thursday after Chief Executive Officer (CEO) Elon Muskannounced that indications are his controversial $55.8 billion pay package will be approved when the votes from today’s shareholder meeting are tallied. 

Musk wrote Wednesday night on X that both the compensation deal, plus a second resolution on moving the electric vehicle (EV) maker’s incorporation from Delaware to Texas, were on their way to passing “by wide margins.”

Shareholders were asked to again back the plan, which they originally approved in a 2018 vote. However, a Delaware judge threw it out in January, ruling that the payment, the largest in corporate history, was excessive.

The final results of the votes will be revealed at the shareholder meeting being held at 3:30 PM Central Time at Tesla’s Austin, Texas, headquarters.

Tesla shares were up 3% but they are still down by a fifth this year.

–Bill McColl

Watch Out for These Levels in Broadcom’s Stock Price

3 hr 37 min ago

Shares in Broadcom (AVGO) surged after the chipmaker reported better-than-expected fiscal second-quarter revenue, fueled by artificial intelligence (AI) product sales reaching a record high. Following in the footsteps of Wall Street darling Nvidia (NVDA), Broadcom also announced a 10-for-1 stock split.

With the stock hitting a record high on Thursday, investors can forecast a profit target using technical analysis by applying the measuring principle. To do this, simply calculate the distance of the ascending triangle’s widest portion in dollars and add that amount to the pattern’s top trendline.

In this particular case, add $330 to $1,415, which projects a price target of $1,745. This provides a general area on the chart where the stock may run into selling pressure, especially if other indicators, such as the relative strength index (RSI), warn of overbought conditions.

When the stock undergoes retracements, investors should monitor the ascending triangle’s top trendline at $1,415, an area on the chart that will likely flip from prior resistance into future support. A breakdown below this technically important level could see the stock revisit lower support around $1,132, where the price finds a confluence of support from the December swing high and rising 200-day moving average.

Broadcom shares were up more than 13% at $1,709 early Thursday, and have gained more than 50% this year.

–Tim Smith

Stock Futures Mixed

4 hr 58 min ago

Dow futures were down 0.3% in premarket trading Thursday.

S&P futures were up 0.2%.

Nasdaq futures were up 0.6%.