Jun 14, 2024
Hot Stocks 🔥

Broadcom Up After Stock Split Announcement | Nemo

Name of opportunity: 👀

Broadcom Inc 

Stock split: 🪓

Broadcom has plans for a 10-for-1 stock split, set to take effect on 15 July. This will increase the number of stocks available, with every shareholder (registered as of 11 July) receiving an additional 9 shares for each share they hold (as of 12 July). The CFO Kirsten Spears said the goal was to “make ownership of Broadcom stock more accessible to investors and employees”. 

How hot is this investment opportunity? 🔥🔥🔥🔥

Analysts say stock splits in general make stocks more affordable, lowering the share price, which makes the stock in question more desirable to investors who now perceive it as within their reach. Stock splits also increase the market liquidity of the shares. A stock split can be interpreted as an indication that the company is feeling confident about the continued growth in value of the stock - and this is how analysts and investors are responding to Broadcom’s announcement, with Broadcom stock rising by over 13% yesterday. 

As well as being excited about the stock split, analysts are also impressed by Broadcom’s Q2 2024 financial results. Revenue is up 43% from the previous year, to US$12.5 billion, a high increase. Analysts think this suggests that Broadcom is financially in good shape, and likely to continue its growth. 

Hot chips: 🖥️

Broadcom is a global technology company that designs, develops, and supplies a range of semiconductor, enterprise software and security solutions. As of last year, over 70% of the company’s revenue came from semiconductor-related products. Headquartered in Palo Alto, California, the company has a long history in the tech industry - its origins lie in HP Associates, a semiconductor division of Hewlitt-Packard, established in 1961. Broadcom’s NICs (network interface controllers) are used by Apple, Hewlett Packard Enterprise, and Raspberry Pi.

Which neme?: 🔍

‘Microchips’, ‘Top Stocks on X/Twitter’, ‘Stocks on the Move’, ‘Top Gainers Today’, ‘Copy a $10Trn Asset Manager’, ‘Record Setters so far in 2024’, ‘This Week’s Earnings’ 

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Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.